Guangzhou Auto spends $973 mln in developing own brands

Shanghai, April 30 (Gasgoo.com) Following its display of three own-brand concepts at the 2008 Beijing auto show (April 20-28), Guangzhou Automobile Group has started its ambitious project of developing its own brands of cars. The auto-making group has invested 6.8 billion yuan ($973 million) in the research and development of own-brand sedans and in the manufacturing facilities. The all-new sedans to be put onto the market by Guangzhou Auto in 2010 will mid-class and luxury cars. 

At the 2008 Beijing auto show, Guangzhou Automobile Group displayed three own-brand concept cars: the all-new Cabrio-Coupe hard-top convertible sports car, the hybrid AHEV model, and the 4-door Coupe. Of the three concept cars, the Cabrio-Coupe hard-top, based on 4-door Coupe and suitable for two people, was unveiled for the first time. The finished product of the AHEV concept was created by Italy's Torino Design first as a design study.

Guangzhou Auto will develop its own brand cars based on these new concept models. In November 2007, the automaker kicked off the construction of its new R&D and manufacturing base in Fanyu city new Guangzhou. The project, which costs 6.8 billion yuan and covers an area of 1.5 million square meters, includes an R&D center (costing more than half of the investment), an engine-making plant, and an assembly / OEM plant. Upon completion next year, the new production facility will have an annual capacity of 1 million units and achieve an annual sales revenue of 200 billion yuan.

A top executive of Guangzhou Auto said at the Beijing auto show that the company will put its own brand new cars onto the market in 2010, and before the roll-out of its new complete vehicles, the engine plant will start production. The new own-brand cars will target the mid-class and high-end sedan segments.

As Chinese joint-venture partner for Honda and Toyota (which also started with the mid-class and luxury cars, such as Accord and Camry), Guangdong Auto will continue to cement and utilize its partnership with the two Japanese auto-making giants, and will benefit more from the technical and human resources of the joint ventures.