Dongfeng is driving for major expansion into the North American market with new products, new dealer programs, a refined pricing strategy, and plans to grow to more than 60 dealer outlets in the next two years, the company announced.

Dongfeng Construction Machinery North America President, Curt Unger, said the company unveiled these efforts at this year’s ConExpo show. Unger said that Dongfeng Construction Machinery North America was a new company on the scene in 2008. Now, just three years later, Dongfeng arrived at ConExpo as a global competitor with the products, parts support, service support, financing and sales programs in place to compete in one of the world’s largest machine markets.

“We’re putting a lot of new things in place to help us sign dealers and drive new sales,” Unger said. “We’re aggressively pursuing dealers right now.” Dongfeng showed 14 machines at Con Expo, he said. Unger said Dongfeng is unveiling a new line up of attractive programs for dealers.

“We have reviewed all of our pricing and recently adjusted it to ensure we are competitive across the board with our entire line” he said. “We have put together a dealer financing program which is really important as dealers recover from the tough business climate.”

Unger said Dongfeng’s marketing efforts in coming months will focus on dealer recruitment. Dongfeng signed five dealers in 2010. It now has 13 dealers with a total of 17 outlets, but has plans to have more than 60 dealers when fully expanded. Unger said Dongfeng will focus first on penetrating East Coast markets, as the company believes the economic recovery is happening there first. He said Dongfeng is pursuing the rental market and the general contractor segment and he believes Dongfeng’s wheel loaders, excavators, skid-steers and backhoes mesh well with market demands.

“We believe the rental market will be good for us. In the past three years, customers have not been able to buy anything, and they’re renting now instead of purchasing. General contractors have lost a lot of money, so they will rent. Our machines are easy to operate and incredibly durable, so this is a great fit.”

Unger said Dongfeng machines are appealing because they are easy to acquire and easy to operate and maintain.

“Our goal is to make everything as easy as possible, from purchase, to operating the machine, to service and maintenance. Buyers will just get a lot of up time with Dongfeng,” he said.

“People are impressed by the power of the machine, but also like the fact there aren’t too many bells and whistles which drive the price up, and make maintenance expensive and time consuming,” he said. “Anyone who wants to do some of their own servicing can do that on our machines. We believe the market is in a value-oriented mindset right now and this is where Dongfeng can excel.”

Dongfeng North America Chairman, Jim Donoghue, notes Dongfeng is poised for success in the U.S. saying he expects to more than double sales in 2011. Globally, momentum is on Dongfeng’s side, as the company posted sales records –more than doubling profits in 2010 with reported total profits of US$280.44 million, up 79.9% from US$151 million reported in 2009. Total sales revenue of US$2.32 billion increased 50.9% over 2009, from US$1.49 billion, setting new company records, executives said.
Industry recognition has followed the company’s success. Donoghue noted Dongfeng has earned its way into a coveted show locale at ConExpo -- a first for Dongfeng, and a first for any China-based machine manufacturer.

He sums it up: “We’re starting to take our position on the global stage because we have earned it by making Dongfeng customers successful.