Dongfeng Glides Into Global Sailing Contest

Dongfeng Motor Corp. is sponsoring a team in a major global sailing competition, joining a fledgling movement among outward-looking Chinese brands trying to elevate themselves on the world stage.

The multinational 12-person yachting team from France, New Zealand, the Netherlands, Australia, the U.K. and China is competing in the 2017-18 edition of the Volvo Ocean Race, which began Oct. 14. The event is co-owned by Volvo Cars, a Swedish subsidiary of Chinese automaker Zhejiang Geely Holding Group Co. Ltd., and the separate, Sweden-based Volvo Group.

The race is the second time that Dongfeng has participated in the seven-yacht round-the-world competition; the Dongfeng team came in third place in the 2014-15 event.

This year’s entry is different for Dongfeng than before, as it aims at giving the company a bigger place in the spotlight as it tries to raise global awareness of its image.

“The level of sponsorship for the race this year is higher, and it was in the name of the whole group as opposed to a lower-level of a subsidiary last time,” a former employee who retains a close relationship with the company told Caixin, speaking on condition of anonymity because she is not authorized to speak to media.

“The purpose of Dongfeng’s sponsorship is to promote its self-owned brands, mainly commercial vehicles,” she added.

Dongfeng is one of China’s largest automakers and partner in a number of major joint ventures with foreign partners, including Japan’s Nissan Motor Co. Ltd. and Honda Motor Co. Ltd., as well as France’s Groupe Renault. It is also associated with Nissan’s Infiniti luxury brand and a number of other domestic brands. Industry experts said the wide array of brand associations could be a hindrance for the automaker moving forward.

“The biggest problem for Dongfeng is that all of its subsidiaries are each doing things in their own way, and all of its products bear the same logo,” said Zeng Zhiling, general manager of LMC Automotive, a Shanghai-based industry consultancy. “In the case of the Volvo Ocean Race, it is unclear which entity and product the company wants to communicate to its audiences since all the subsidiaries can use this sponsorship to promote themselves.”

Contact reporter Mo Yelin (yelinmo@caixin.com)