Jan. 18, 2007 (China Knowledge) – Nissan Motor Co., Ltd., (NML) and Dongfeng Motor Group Co. Ltd. have been given the go-ahead by the China Banking Regulatory Commission (CBRC) to set up a new auto finance company.

To be based in Shanghai, Dongfeng Nissan Auto Finance Co. Ltd. (DNAF) will be 65% be owned by Nissan and 35% by Dongfeng with a capital of RMB 500 million. In accordance to CBRC regulations, the company must be established within six months after the official date of approval.

A press release issued by both companies said that DNAF will provide new car retail finance to Nissan and Infiniti customers, and inventory finance to dealers of both brands. When DNAF’s commences operations, the provision of inventory financing for dealerships will be made available throughout China.

Expansion plans include targeting major Chinese cities like Beijing, Guangzhou and Wuhan by 2010 for retail financing.