Guangzhou Automobile Group Co., Ltd. (hereinafter "GAC") and Zhejiang GONOW Group（hereinafter ”GONOW Auto”) signed the strategic cooperation at Hangzhou city, Zhejiang Province on April 26,2010. Leaders from national industry, Zhejiang province, Guangzhou city, Hangzhou city, Taizhou city and Dongying city as well as guests from all walks of life attended the signing ceremony. the signature of the agreement means the GAC and GONOW Auto will continue self-innovation, improve original brand manufacture(OBM) and explore the auto market based on the complement on each other and win-win. It is a milestone on the restructuring of the Chinese auto industry.
GAC is a large auto manufacturing enterprise in China, whose main businesses covers the whole design and manufacturing of vehicle and parts, which facing the domestic and foreign markets, sales of automobiles, auto logistics, auto finance, auto insurance and the related services, making GAC an auto company with the independent and integrated valve chain of manufacturing, supply, sales and R&D system. Currently GAC has invested in tens of renowned subsidiaries including Guangzhou Honda Automobile Co., Ltd., Guangzhou Toyota Motor Co., Ltd., Honda Motor (China) Co., Ltd., GAC Research Development and Production Base, Guangzhou Denway Bus Co., Ltd., Guangzhou Yangcheng Automobile Co., Ltd., Guangqi Hino Motor Co., Ltd., Guangzhou Automobile Group Component Co., Ltd., Guangqi Toyota Engine Co., Ltd., Guangzhou Automobile Group Business Co., Guangzhou Guang Ai Insurance Brokers Ltd., Tong Fang Global (Tianjin) Logistic Co., Ltd., China Lounge Investment Ltd., and GAC Automotive Engineering Institute and manufactures several series of products such as multiple models and brands of passenger vehicles , commercial vehicles, auto engines and main automobile parts.
GONOW Auto is a private owned auto company which owns Hangzhou xiaoshan manufacturing base, Taizhou Luqiao manufacturing base and Shandong dongying manufacturing base, with designed annual production capacity of 300,000 pickup, SUV and mini-van. During the past years, with continues effort of GONOW people, GONOW
GAC and GONOW Auto made a friendly agreement on strategic and cooperation based on requirement of self-development. According to the agreement, GAC will invest on fund and GONOW Auto will invest on the relevant auto industry to integral GONOW Auto into a joint venture with shares of 51:49 between GAC and GONOW Auto. On the one hand, the both parties will supply fund, technical, talent and management to further motivate the production capacity, product and team spirit, on the other hand, the joint venture will use the management of private company and exert its competitive advantage in town, countryside and overseas market. Moreover, the new joint venture will enhance its production capability and try its best to make it the pickup and mini-van manufacture base head in China.
The cooperation between GAC and GONOW Auto will optimize the industry layout of both parties, thus taking better chance in the structure of national industrial structure; perfect the product structure and brand so as to further production capability and enhance its influence on the domestic auto industry; innovate the cooperation mechanism and set an example for cooperation between the state-owned and private own corporate.
We believe the future of GONOW will be better!