It seems that the majority of the upper Dahon team left to start Tern from what I've read in the news. Dahon of course isn't too happy.... lawsuits seem to be on the horizon or already going.
I for one like the thought of a new folding bike brand to stir up some competition.
They are very much being produced by ex-Dahon employees. I know one of them, and was invited to their private media bbq next week, but will not be able to attend Interbike.