Taiwanese car brand Luxgen to leave China

Yulon Group, Chinese partner Dongfeng still discussing details

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Luxgen's most recent car, the URX SUV 

Luxgen's most recent car, the URX SUV  (CNA photo)

TAIPEI (Taiwan News) — Amid a sluggish car market in China, Taiwan's Yulon Group has decided to withdraw its Luxgen brand from the country, reports said Wednesday (June 17).

The move was designed to cut costs but was only possible because Yulon's main partner in China, Dongfeng Motor Corporation, has agreed, CNA reported. While their joint venture had tried to benefit from a decade of rapidly growing car sales in China, the most recent two years brought an overall slowdown, and for Luxgen even a rapid decline in sales.

While there was a basic consensus about the withdrawal, Yulon and Dongfeng were still negotiating the details, as it would involve customer service and the legal process of ending the joint project.

Luxgen's departure from China has also thrown doubt on the future of the separate brand in Taiwan itself, but Yulon Chairwoman Lilian Chen's (嚴陳莉蓮) efforts to forge an alliance with the Foxconn Technology Group could prevent a worst-case scenario, according to the CNA report.