AutoBeta(AutoBeta.net)03/29 Report--

On March 29, Guangzhou Auto Honda announced that it had formally completed the acquisition and transformation of Honda Motor (China) Co., Ltd., which changed its name to the Guangzhou Development Zone plant of Guangzhou Automobile Co., Ltd., increasing enterprise capacity and about to put into production of Accord models for domestic sale.

Honda Motor (China), founded on September 8, 2003, is the first vehicle manufacturer in China's automobile history to export 100% of its products. The company is jointly funded by Honda Technology Research Industry Co., Ltd. (55%), Honda Technology Research Industry (China) Investment Co., Ltd. (10%), Guangzhou Automobile Group Co., Ltd. (25%) and Dongfeng Automobile Group Co., Ltd. (10%). The joint venture has a life of 30 years and a registered capital of 82 million US dollars.

Honda Motor (China) Co., Ltd. is mainly engaged in vehicle production and global export of KD parts. Honda Motor (China) Co., Ltd. is located in Guangzhou Export processing Zone, Guangdong Province, with a production capacity of 60, 000 vehicles per year (two-shift production). The products are not qualified to sell to the domestic market, only for export business.

In 2018, GAC Honda announced the wholly-owned acquisition of Honda Motor (China), with the aim of expanding its production capacity after upgrading. According to GAC GROUP's announcement, the total investment in the transformation and upgrading project exceeded 1.2 billion yuan.

After the completion of the transformation of Guangzhou Auto Honda, Honda (China) still retains the original vehicle production and export and global KD parts supply two major businesses. In terms of vehicle business, GAC Honda Guangzhou Development Zone plant has a capacity of 50, 000 vehicles per year. In addition to continuing to produce CITY models and export them to the Mexican market, it will also put into production domestic models from April 2020, with the first model being ACCORD. The global export KD parts supply business will supply mass-produced parts to Honda's vehicle factories in 13 countries and regions, including Thailand.

Guangzhou Auto Honda sold 770000 vehicles in 2019, up 4% from a year earlier, with Honda and concept brands selling a total of 756000 vehicles and Acura brand selling 14786 vehicles. GAC Honda now has three vehicle production lines and an engine factory in two plants in Guangzhou, with a total designed vehicle capacity of 600000 vehicles and a capacity utilization rate of 128 per cent. Now a new factory in Guangzhou Development Zone has been added, and the enterprise system has been changed to fourth-line production.

In addition, GAC Honda plans to expand the capacity of the third plant from 120000 to 240000 by 2020.

Recently, GAC Honda has also changed its business scope, including increasing the manufacture of complete vehicles, special-purpose vehicles and motorcycles; the construction of automotive engine manufacturing and engine research and development institutions: more than 3 litres of diesel engines with a capacity of not less than 40 kilowatts, fuel cells and new energy engines such as mixed fuels. Further expand the business of the enterprise.

According to the plan, in terms of the introduction of new cars, Guangzhou Auto Honda will introduce a medium-term revamped model of medium-sized SUV Guandao this year, a Ling hybrid version of i-MMD+1.5L engine, and a new generation of flying.

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