Gasgoo.com (Shanghai December 4) - In an interview with the National Business Daily, Guangzhou Automobile Group President Zeng Qinghong announced its plans to increase its annual production capacity to one million automobiles by 2020. At the same time, Mr. Zeng reaffirmed GAC’s commitment to building two centers and four shared platforms.
The two centers refer to the new R&D GAC Center and Production and Manufacturing Center, while the four shared platforms refer to shared R&D, purchasing, sales network and talent resources. GAC is aiming to integrate unified standards for its own brands across these various operations. GAC has already invested 7 billion RMB ($1.14b) to establish R&D facilities in five locations spanning three countries.
According to Mr. Zeng (pictured, center), GAC will also work to more accurately position its Trumpchi, Zhong Xing and Gonow own brands. “Trumpchi will be targeted at the premium market, while Zhong Xing will work to produce smaller and medium sized products, which is key to boosting overall GAC own brand sales.”
Worth mentioning is that Dongfeng Group announced in 2011 that it would work to revolutionize its R&D, purchasing, sales and marketing operations for its own brands. However, these plans ended up falling flat during their actual implementation. It will be crucial for GAC to avoid the mistakes Dongfeng made in order to succeed in putting its plans forward.
