Guangqi Honda to invest 3b yuan in R&D

Gasgoo.com (Shanghai April 7) - Guangqi Honda is currently preparing to invest three billion yuan ($479.42m) in establishing a new research and development center and subsidiary company, Caijing reported today, citing a statement made by the joint venture's Executive Deputy General Manager Yao Yiming at the Opening Up and Integration of the Automobile Industry roundtable discussion currently held by the Boao Forum for Asia. Guangqi Honda believes that the new center will help boast its independent R&D capabilities.

According to Mr. Yao (pictured), Guangqi Honda has spent virtually nothing on researching and developing its own technology in the past. However, the JV, alongside with its parent companies GAC and Honda, hopes to change this trend by developing its own independent R&D and auto part procurement. "As an OEM, [we] strive to establish our own brand," Mr. Yao stated. "We do not want to just bring international automobile models to China, but also aim to ensure each models meets the [demands] of Chinese consumers, therefore we absolutely need to form our own R&D team and speed up localization of auto parts," Mr. Yao explains.

Guangqi Honda is not the only enterprise looking into to expanding its independent R&D ability. Changan Automobile General Manager Zhang Baolin has revealed that his company is also rapidly developing its R&D department, with its R&D staff now including 6,000 members from 15 different nations.