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GAC Group, with its long sleeves and good dancing, once again expanded its territory. On Thursday, Guangzhou Automobile Group officially signed a cooperation agreement with Yichang Municipal Government and Zhongxing Automobile to jointly build Yichang Automobile Base. As a result, GAC Group has once again expanded its industrial map and extended its sense of touch to central China, where it once again accumulated strategic opportunities.
Build 450,000 vehicle production capacity step by step
According to the signed agreement, the three parties will conduct comprehensive cooperation in the field of auto parts and vehicle manufacturing and sales to develop the Yichang City automobile industry project. With the availability of relevant resources, after the joint efforts of the three parties, it is expected that an overall production capacity of more than 450,000 vehicles will be produced in Yichang in the future.
This is after GAC Gonow project, GAC once again cooperated with domestic private car companies. ZTE Motor originally built a passenger car base in Yichang, and Guangzhou Automobile has entered into Central China through its cooperation. On the same day, Zhongxing Auto's Ark AUV was off the assembly line at Yichang Base. It is expected that GAC and ZTE will cooperate to build more vehicles at the Yichang base in the future. The signing and implementation of the Trilateral Cooperation Agreement will help GAC Group and Zhongxing Automotive complement each other, further enrich the product sequence, improve the industrial layout and achieve a win-win development.
GAC has thus further promoted the diversification of cross-regional layout and industrial sectors. Zeng Qinghong, general manager of GAC Group, stated that Yichang is located in the central region and is very important for GAC Group's layout. GAC will use this to build a new platform and new mechanism for cooperation and development, and gradually increase the level and level of cooperation.
In accordance with the plan of Yichang City, the automobile industry will be cultivated as a strategic emerging industry, and governments and enterprises will join hands to create a 10 billion-level, 100 billion-level automotive industry. At the end of last year, Guangqi Group, China Auto Parts Industry Corporation, Zhongxing Auto and Yichang Municipal Government had signed a memorandum of strategic cooperation. According to the memorandum of cooperation, Guangzhou Automobile Group, China Automotive Parts Industry Corporation and Zhongxing Automobile will cooperate in vehicle development, parts and components research and development, energy conservation and new energy vehicles, international business, logistics and transportation. China Auto Parts Industry Co., Ltd. will invest in the construction of a Chinese auto parts (Yichang) industrial base, which will form three major segments: auto parts testing and R&D and production, new energy auto R&D, automotive and parts and components markets. Yuan's auto parts industry cluster.
Accumulating Goodness Accumulation Strategies
Yichang therefore became another strategic location for GAC. From 2009 onwards, GAC Group has successively reorganized Hunan Changfeng Automobile and Zhejiang Gonow Automobile, established a joint venture of GAC Fiat and GAC Mitsubishi in Changsha, launched GAC Daihei's own brand, and formed the “Guangdong Automobile†covering South China and East China in the regional layout. “Layout†has also changed the single Japanese brand pattern in the product segment, forming a diversified joint venture system, joint ventures and autonomy in parallel, and the products cover the new situation of passenger cars, micro-customers and passenger cars. Last year, GAC and Chery Motors established a strategic cooperation alliance to complete the “Ice-breaking Journey†in which domestic auto companies launched a technology alliance, and the results of the cooperation between the two sides will be presented successively from this year.
“Guangzhou Automobile has been building good relationships,†said Zhang Zhiyong, an automotive analyst. In recent years, GAC has insisted on its own centered expansion and initially completed the “Grand Guangzhou Auto†strategic plan, which will give it an opportunity to further grow bigger and stronger.
Capital increase of RMB 1.7 billion to expand production capacity
The GAC Group announced a few days ago that it plans to increase capital of RMB 1.7 billion to Guangqi Passenger Car Co., Ltd. for expansion of production capacity, and at the same time invest heavily in new auto brand new models.
It is understood that the current production capacity of GAC passenger vehicles is 100,000, and the follow-up will be expanded to 200,000. The new capacity expansion project plans to invest 1.7 billion yuan, of which the shareholders will increase capital by 600 million yuan. At the same time, GAC Group provided RMB 606 million in entrusted loans to GAC passenger vehicles, of which RMB 184 million were for entrusted loans in 2013. The entrusted loan funds for the latter period were provided in batches according to the construction of GAC passenger vehicle project and the actual funding requirements.
GAC will also invest 500 million yuan to develop its own brand A28 model project, invest 167 million yuan to develop its own brand AD2 model project, and invest 480 million yuan to develop its own brand A68 project. This means that GAC's own brands will gradually improve the product line.
In addition, GAC will also increase capital of 246 million yuan to Guangqi Parts and Technology Corporation, and increase its investment to GAC Trade by 238.8 million yuan.