Undergoing re-organization, Historical problems of GAC Gonow to be solved gradually

Biwen Wang From Gasgoo.com

Gasgoo.com (Shanghai June 3rd)– The greatly concerned GAC Gonow dealership “rights protection” incident has new progress recently. According to the latest news, GAC Gonow could provide main parts now and will recover the provision of most parts since June to solve after-sales problem to a maximum extent. Besides, the 400 after-sales hot line has been opened and provides 24 hour customer service.

GAC Group released an announcement in March that GAC Passenger Vehicle would purchase 49% shares of GAC Gonow, currently held by Zhejiang Gonow Holdings Group Ltd., for following production and construction. But business data reveals that GAC Gonow was renamed as GAC Motor (Hangzhou) on April 27th, 2016.

On May 9th, some dealerships trapping in financial trouble went to GAC Gonow in group for “rights-protection” negotiation, which raised great attention from the media. It’s learned that consensus has reached and working groups are sent to dealerships for on-site check. Problems will be solved according to agreements and local service networks could accept claims and complaints.

GAC Gonow was established on Dec 9th, 2010, in Hangzhou, with GAC Group and Gonow holding 51% and 49% shares respectively. According to primitive agreement, Gonow holding group will take in charge of the production and operation. The cooperation was based on the 2009 national adjustment plan on auto industry. But the GAC Gonow’s weak historical foundation and fierce market competition make it encounter bottleneck in recently years, far below the expected development. The re-organization could also be regarded as a measure to respond the structural reform of the supply front.

It’s learned that the re-organization work is still going on and it’s expected it will take a period of time to finish the whole process.

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