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Guangzhou Automobile Industry Group Introduction

14144 Views 7 Replies 7 Participants Last post by  Chinese LSEV
Guangzhou Automobile Industry Group Co., Ltd. (GAIG) was founded on June 8th, 2000, on the integration of Guangzhou Automobile Group Co., Ltd. (previously Guangzhou Automobile Group Co., Ltd.) and Guangzhou Motors Group Company (previously Guangzhou Wuyang Group Company). It is authorized by Guangzhou Municipal Government to operate state- owned assets, and is a large-scale company group with heavy support from Guangdong Province and Guangzhou Municipality, in 2004, GAIG sold 210,000 cars and 620,000 motorcycles, realizing a sales income of 42.8 billion RMB, with a pre-tax profit of 11.1 billion RMB. In 2004, GAIG ranks 50th among “Top 500 strongest companies in china”.
  After strategic adjustment in structure in 1997, GAIG successfully chose new partners on passenger car projects, and established Guangzhou Honda Automobile Co., Ltd. and Guangzhou ISUZU Bus Co., Ltd., two joint- ventures with Japanese partners, later on. Through a series reforms and reconstructions in recent years which have laid a solid foundation for the development, GAIG has set up five manufacturing bases (passenger car, bus, light- duty truck, motorcycle, and automobile parts) and R&D Center of Engineering Technology. GAIG has invested in 38 joint-ventures with more than 10 foreign partners.

  At present, GAIG possesses 112 subsidiaries, wholly owned or jointly owned like Guangzhou Automobile Group Co., Ltd. (previously Guangzhou Automobile Group Co., Ltd.), Guangzhou Motors Group Company (previously Guangzhou Motorcycle Group Company), Guangzhou Honda Automobile Co., Ltd., Guangzhou Toyota Motor Co., Ltd., Guangqi Toyota Engine Co., Ltd., Wuyang-Honda Motors (Guangzhou) Co., Ltd., Guangzhou ISUZU Bus Co., Ltd., Guangzhou Denway Bus Co., Ltd., Guangzhou Yangcheng Automobile Co., Ltd., Guangzhou Automobile Group Component Co., Ltd., China Lounge Investments Co., Ltd., Guangzhou Automobile Group Business Co., Ltd., and Guangzhou Automobile Engineering Technology R&D Center. Main products of GAIG are Guangzhou Honda Accord passenger car, Odyssey passenger car and Fit passenger car, Guangqi Toyota AZ engine, Guangzhou GALA large and medium-size luxurious buses of three series, Denway, Pearl River large and medium-size bus, Yangcheng mini-bus, light-duty truck and special-purpase vehicle, Wuyang motorcycle, Wuyang-Honda motorcycle, automobile and motorcycle components like air-conditioner, seat, lamp, springs and shock absorber. Products of GAIG are sold throughout China, and some have been exported to countries and regions in Europe, America and the rest of Asia. China's first passenger car export base project invested by GAIG, Honda Motor Co., Ltd., and Dong Feng Motor Co., Ltd, has began its production.

  With China’s entry into WTO, strengthening of China’s economy, and improvement on the Chinese people’s living standard, new opportunities of development are brought before China’s automobile industry. By grasping the great opportunity of development, making good use of advanced technology and managerial experiences of foreign counterparts, constantly improving the managerial ability, and actively participating international competition and cooperation.Guangzhou Automobile Group Co., Ltd. (hereinafter "GAC") is integrally converted into joint stock company from the former limited liability company on June 28th, 2005. It was initiated by Guangzhou Automobile Industry Group Co., Ltd., Wanxiang Group Corporation, China National Machinery Industry Corporation, Guangzhou Iron & Steel Enterprises Group and Guangzhou Chime-Long Hotel Co., Ltd..
  GAC's equity participation is as below: Guangzhou Automobile Industry Group Co., Ltd. holds 3,217,403,529 shares, which account for 91.9346% of the total shareholding equity, Wanxiang Group Corporation holds 139,636,656 shares, which account for 3.99%, China National Machinery Industry Corporation holds 129,169,156 shares, which account for 3.6909%, Guangzhou Iron & Steel Enterprises Group holds 6,999,331 shares, which account for 0.2%, Guangzhou Chime-Long Hotel Co., Ltd. holds 6,456,883 shares, which account for 0.1845%. Among them, Wanxiang Group Corporation is China's leading manufacturer of automobile parts and components, China National Machinery Industry Corporation has an advantage in machinery manufacture, Guangzhou Iron & Steel Enterprises Group is closely linked with automobile industry and has a regional advantage, Guangzhou Chime-Long Hotel Co., Ltd. is a private-owned enterprise with favorable operation mechanism and good market reputation.
  With an independent and complete production, supply, sales and R&D system, GAC's main business relates to automobile manufacture, sales and service, automobile trade and logistics services, automobile parts and components, auto finance and related services, which faces both overseas and domestic market. At present, it has tens of enterprises, including Guangzhou Honda Automobile Co., Ltd., Guangzhou Toyota Motor Co., Ltd., Honda Motor (China) Co., Ltd., Guangzhou Isuzu Bus Co., Ltd., Guangzhou Denway Bus Co., Ltd., Guangzhou Yangcheng Automobile Co., Ltd., Guangqi Toyota Engine Co., Ltd., Guangzhou Automobile Group Component Co., Ltd., China Lounge Investments Limited, Guangzhou Automobile Group Business Co., Ltd., and Guangzhou Automobile Industry Park Co., Ltd., etc.. GAC offers different types of passenger cars, commercial vehicles, automotive engines and major automobile parts.
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Guangzhou Automobile goes all the way back to 1985, when Peugeot and the Chinese government signed an agreement to built some Peugeot 504 and 505 in China.
Honda, Toyota JVs renamed to feature "GAIC" label.

November 24, 2008 - Last week at the Guangzhou auto show, Guangzhou Automobile Group (GAIC) revealed that its two subsidiaries "Guangzhou Toyota" and "Guangzhou Honda" will be renamed as "GAIC Toyota" and "GAIC Honda" (or "Guangzhou Auto Toyota" and "Guangzhou Auto Honda"?), and the two joint ventures with Japanese auto giants will be required to pay for using the Guangzhou Auto trademark, said the Beijing News today.

Zhang Fangyou, chairman of Guangzhou Auto Group, made this decision public at the auto event. A top executive of Guangzhou Toyota explained that there are three major factors behind the renaming of the two joint ventures: 1. Guangzhou is a very local name, not so suitable for JVs’ globalization needs; 2. the sales network and corporate names should be unified; 3. the new names will feature the names and brands of each side of the ventures.

Zhang stressed that Guangzhou Auto is determined to boost its brand awareness in the auto market and the first step is to feature its brand name in the joint ventures. The focus of its future operation will shift from the individual vehicle product sales to the brand marketing, Zhang added.

Meanwhile, the sales channels and networks of the two joint ventures will carry Guangzhou Auto's trade mark, and they will have to pay for the use of the trade name to help enhance the influence and value of the Guangzhou Auto's label "GAIC" in the future.

It seems the two joint ventures will be more likely renamed as GAIC Toyota and GAIC Honda, though their new official names are not available in English yet, even on their corporate websites.
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GAC GONOW joint company
Guangzhou Automobile Group Co. (GAC), the largest automaker in southern China, and Gonow Auto Co., a small privately owned SUV and pick-up truck manufacturer based in Taizhou, Zhejiang, have signed today an agreement to create a 51:49 joint venture, the Information Times reported Thursday.

GAC, a partner of Toyota Motor Corp. and Honda Motor Co., has agreed to retain the existing management team of Gonow in the new company, which will have a registered capital of 1.26 billion yuan ($189 million) and will be lead by Gonow chairman Liao Xuezhong.

Gonow will not largely adjust its product planning, and will still focus on production of micro vehicle, SUV and pickup in the long term. However, its development scale must be enlarged rapidly because GAC wants to increase sales of the restructed Gonow to 600,000 units by 2015, a source from Gonow told the First Financial Daily in October.

Gonow, which sold around 40,000 vehicles last year, currently owns three vehicle manufacturing plants, seven machinery part plants and one research center. Net assets of the company are valued at approximately 3.2 billion yuan.

On April 26, 2010, GAC and Gonow signed a strategic cooperation agreement in Hangzhou, according to which the Guangzhou-based automaker will allocate a certain amount of cash to restructure relevant assets of Gonow and build a new company under the name "Guangqi Gonow", in which GAC will hold 51% stake and the rest 49% stake will belong to Gonow.

This is the first deal in which a state-owned enterprise will acquire a private company in the auto industry and will set an example for similar deals in the future, said.
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It's correct that now there is the partnership with Fiat-Chrysler?
Yes, Fiat and GAC formed JV

China approves Guangzhou Auto, Fiat joint venture

November 26, 2009
China's economic planner said Wednesday it approved a vehicle-making joint venture between Guangzhou Automobile Group and Fiat SpA , and the restructuring of Guangzhou Auto and Hunan Changfeng Motors Co.

The joint venture between Fiat and Guangzhou Auto, announced in July, will make Fiat-brand passenger vehicles, Guangzhou Auto-brand sport-utility vehicles and Fiat's 1.4-liter engines, the National Development and Reform Commission said in a statement on its Web site.

The venture will have an annual production capacity of 140,000 vehicles and 220,000 engines.

Guangzhou Auto reached a deal in May to buy a 29% stake in Hunan Changfeng from Changfeng (Group) Co. to become the sport-utility maker's biggest shareholder.
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