Shanghai, July 30 (Gasgoo.com) China state-owned Guangzhou Automobile Group Co. (GAC) has signed a framework agreement with Zhejiang Gonow Auto, a private-owned pickup manufacturer, on building a 50:50 joint venture in the east China city of Hangzhou, according to Chinese media reports.
Miao Xuezhong, president of Gonow Auto, told Sina.com that the company did reach an initial agreement with GAC on a JV deal but the two sides are still working on details.
Citing an informed source, Beijing Youth Daily said that the two sides would make joint investment to set up a joint venture in Xiaoshan, Hangzhou, based on Gonow's existing facility there. Gonow will invest in terms of fixed assets while GAC will inject cash.
The investments will go towards the expansion of facilities and introducing an enhanced range of products and businesses in the country.
Established in May of 2003, Gonow Auto is a private company specialized in manufacturing of pickup and sport-utility vehicle (SUV). The company is located in Luqiao District, Taizhou City, Zhejiang Province, P.R.China,
It now has an annual production capacity of 60,000 pickups and SUVs, and 60,000 engines, with the potential to be boosted to 200,000 pickups and SUV in future.
In a separate, GAC signed an agreement Car maker with Fiat SpA on July 6 to produce Linea sedan in a joint venture beginning in the second half of 2011. The plant initially will produce 140,000 cars and 220,000 engines a year, with the potential to increase to a maximum 250,000 cars and 300,000 engines a year.
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