Guangzhou Auto readies ZX Auto joint venture
Guangzhou Automobile Group Co., a major state-owned automaker, said its board of directors approved a plan to establish a production joint venture with private domestic SUV maker ZX Auto Co.
The joint venture will make use of ZX Auto's plant in Yichang in central China's Hubei province. It will be 60 percent owned by ZX Auto, and GAC will receive a 40 percent stake.
With registered capital of 500 million yuan ($82 million), the partnership initially will build ZX Auto's compact SUVs. The partnership also will produce vehicles for Guangzhou Auto's own brand.
The plant initially will build up to 100,000 vehicles a year. Over the long term, annual production capacity will increase to 400,000 vehicles, according to the agreement the two companies signed in May.
Guangzhou Auto, of Guangzhou in south China's Guangdong province, has joint ventures with Toyota Motor Co., Honda Motor Co. and Fiat S.p.A. It also makes sedans and SUVs for its own brands.
ZX Auto, of Baoding in north China's Hebei province, is a small private SUV and pickup maker.
With registered capital of 500 million yuan ($82 million), the partnership initially will build ZX Auto's compact SUVs. The partnership also will produce vehicles for Guangzhou Auto's own brand.
The plant initially will build up to 100,000 vehicles a year. Over the long term, annual production capacity will increase to 400,000 vehicles, according to the agreement the two companies signed in May.
Guangzhou Auto, of Guangzhou in south China's Guangdong province, has joint ventures with Toyota Motor Co., Honda Motor Co. and Fiat S.p.A. It also makes sedans and SUVs for its own brands.
ZX Auto, of Baoding in north China's Hebei province, is a small private SUV and pickup maker.
