GAC Honda Merged with Its Wholly-owned Subsidiary Honda Motor (China) Investment Co., Ltd.

2020-03-29 11:46:49

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29

2020-03

On March 29, 2020, GAC Honda Automobile Co., Ltd. ("GAC Honda"), a joint venture under GAC Group, declared that it would officially complete the merger with Honda Motor (China) Investment Co., Ltd. ("Honda Motor (China)") by absorption on April 1, 2020.

After the merger, Honda Motor (China) will be renamed Guangzhou Development District Factory of GAC Honda, with a capacity of 50,000 vehicles/year. The two original major businesses, i.e. vehicle production and export and the global supply of KD components and parts, will be retained, and models to be sold on domestic market will be produced. In this way, the resource utilization rate and operation efficiency of GAC Honda will be raised, corporate capacity will be enlarged, and an "all-win" situation will be formed. Moreover, GAC Honda, originally possessing three vehicle production lines at Huangpu and Zengcheng factories and one motor factory, will realize the vehicle production on "four production lines".

Honda Motor (China), established on September 8, 2003, is the first vehicle manufacturer with all products thereof exported in China's automobile history, and became a wholly-owned subsidiary of GAC Honda in 2018.

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