Review of China auto industry
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Guangzhou Auto listed
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The GAC display area at the 2010 Beijing Auto Show. [Asianewsphoto] |
To fuel its aggressive expansion, China's sixth-biggest automaker Guangzhou Automobile Group Co Ltd consummated a long-awaited listing in its entirety through a HK$51.6 billion ($6.6 billion) buyout of its Hong Kong-listed unit Denway Motors at the end of August.
Guangzhou Auto - the partner of Honda, Toyota and Fiat - is also expected to float shares in Shanghai next year.
During the Guangzhou auto show set to close today, the company announced it plans to hike its annual production capacity to 3 million vehicles by 2015, up from less than 1 million this year.
FAW Corp, Chery, Lifan and Beijing Automobile Industry Holdings Corp are also preparing for stock listings. SAIC Motor Co Ltd, China's top auto group, went public in a Shanghai listing in 2006. Dongfeng Motor Group Co Ltd, the No 3 automaker, floated shares in Hong Kong in 2005.
Peugeot's new liaison
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A model stands by a Citroen car in the 2007 Shanghai Auto Show. [Asianewsphoto] |
PSA Peugeot Citroen in August clinched a deal with Chang'an Motor Corp to form a joint venture to develop and produce cars in China.
The move made the French company the latest major foreign carmaker with second partner in China as well as Volkswagen, Toyota and Honda.
The move came amid PSA Peugeot Citroen's unsuccessful 25-year partnership with Dongfeng Motor Corp.
The French carmaker's new joint venture with Chang'an will have a production capacity of 200,000 cars and 200,000 engines in the initial stage. The new association in China will pose a big challenge to PSA Peugeot Citroen on how to balance relations between two different major partners.
