Guangzhou Auto wins approval to build own-brand cars

Shanghai, June 30 (Gasgoo.com) Guangzhou Automobile Group has got government approval to develop own-brand vehicles, local newspaper Guangzhou Daily reported today.

According to its internal document, Guangzhou Auto's own-brand project was approved by China's National Development and Reform Commission on June 10. Under the project, the automaker will invest 3.8 billion yuan ($554 million) to build a production base with capacity of 100,000 complete cars and 100,000 engines a year in the first phase; and then it will raise the output to 200,000 complete cars and 250,000 engines a year in the second phase.

The first own-brand model to be launched by 2010 will be a mid-high class sedan based on a similar model unveiled at last year's Guangzhou Auto Show, according to the report.

Guangzhou Auto displayed three own-brand concept cars, including a all-new Cabrio-Coupe hard-top convertible sports car, a hybrid AHEV model, and a 4-door Coupe at the 2008 Beijing auto show in April. All of its future own-brand models will be based on these concepts, the report said.