GAC Group Acquires Gio Motors to Form Joint Venture to Strive to Expand Micro Vehicle Business

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GAC Group's integration of Gonow has always been a hot topic of concern to the industry. It is reported that Gio Motors will hold a major business event on December 9, 2010. There will be important press releases.

There are speculations about how many versions of GAC Capital have invested. Recently, media reports have reported that the registered capital of the joint venture of GAC Gio has been finalized, amounting to approximately 1.26 billion yuan, and the ratio of GAC and GIO Auto's shares is still 51:49. GAC agreed to retain the management of the existing Gonow Automotive, and the former Chairman of the Gonow Group, Miao Xuezhong, will serve as the president of GAC Gonow.

It is reported that after the signing of the contract, GAC GIO will formally announce its future development plan. The new company's product types will not undergo major adjustments and will continue to adhere to the micro-vehicle, SUV, and pickup trucks. However, the scale needs to be rapidly expanded. The total vehicle production capacity and sales volume will increase from the current 300,000 units to 600,000 units by 2015. .

The industry generally believes that the current shot at Gio Motors is much better than bad, and Guangzhou Automobile Group can quickly cut into the incremental mini vehicle business, fill a big gap, and lay a good foundation for the rapid increase in the future. GAC Group has the highest number of high-grade cars, followed by medium-grade cars, and micro-cars have not. The addition of mini vehicles will make GAC's product structure more reasonable. In fact, micro-vehicles will remain China's largest market segment despite the expected elimination of purchase tax relief next year.

Gio Motors is a private car company in Zhejiang Province. Its chairman is Mou Xuezhong and currently owns three complete vehicle production bases in Xiaoshan, Hangzhou, Taizhou, Zhejiang, and Dongying, Shandong; an automotive research institute, two marketing companies, and seven component manufacturers. In 2009, Gonow sold about 40,000 vehicles.

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