BYD and GAC to establish new energy bus joint venture

Gasgoo.com (Shanghai August 5) - BYD announced today that it will establish a new joint venture company with GAC Group, the China Securities Journal reported today. The new factory will focus on manufacturing new energy-powered buses.

According to an official statement, the new company, known as the Guangzhou Guangqi BYD New Energy Bus Company Limited, has a registered capital of 300 million RMB ($48.67m). BYD will hold a 51 percent share in the company, while GAC owns the remaining 49 percent. The first 120 million RMB ($19.47m) will be invested by both parties in cash, and will be used to begin preliminary construction work. The second phase of investment will be financed by BYD in cash and GAC in both stocks and cash.

According to BYD, in order to speed up construction of new energy buses, its board of directors has permitted management team to promote the establishment and capital investment processes of the new JV company. The management will work on making sure the new JV begins official operation as soon as possible.