Guangzhou Auto to launch own-brand car division

Shanghai, July 18 (Gasgoo.com) Guangzhou Automobile Group Co., one of the "Big Five" Chinese automakers (FAW, SAIC, Chang'an Motors, Dongfeng Motor, and Chery Auto), is building its own-brand passenger vehicle company, which is likely to be located in Fanyu of Guangzhou city, Shanghai Securities News reports today.

The group is planning to deliver own-brand cars into the market by 2010. The passenger car company of Guangzhou Automobile will be established in the third quarter of this year and now its sourcing for this project has been prepared.

On June 10, the National Development and Reform Commission (NDRC) approved Guangzhou Automobile’s own-brand car project and the group was allowed to build its own passenger car company. According to the group’s program, the project will follow two stages: first, to build 100,000 vehicles and 100,000 engines annually; second, to increase the annual production capacity to 200,000 complete vehicles and 250,000 engines. The total investment will reach 3.8 billion yuan ($556 million).

The upcoming passenger car company, including the factory and R&D center, is likely to be located in Fanyu district of Guangzhou as Guangzhou Automobile built the R&D and manufacturing facility in Fanyu on Novovember16 last year, which covered 1.5 million square meters with a total investment of 6.8 billion yuan. The middle-to-high sedans will possibly be first produced by the new company.