Guangzhou to build factory for own-brand car

Chinese automaker Guangzhou Automobile Group is to spend 6.8 billion yuan (US$998 million) to build a manufacturing plant that will assemble its own passenger car design by 2010, according to local reports. Guangzhou already has major passenger car joint venture (JV) operations with Toyota and Honda and is following the example of other Chinese automakers by committing to manufacturing its own-brand. The first phase of Guangzhou’s facility, which is under construction in southern China’s Guangdong province and is due to start operations by 2010, will have an annual production capacity of 100,000 vehicles and 100,000 engines. The second phase of the factory’s development will see 200,000 passenger cars manufactured each year and 250,000 engines. However, the company’s management refused to give a timeline, although there are reports that the company’s first own-brand passenger car will be a medium to large sedan that will begin production in 2010. Shanghai Automotive (SAIC), which has joint ventures with General Motors (GM) and VW, started production of its first passenger car in March 2007, the Roewe 750, based on acquired technology. (July 7, 2008)