GAC Honda to Absorb Honda Automobiles China

GAC Honda to Absorb Honda Automobiles China 1

GAC Honda Automobile Company Ltd. (GAC Honda), a joint venture company of Honda in China, announced today that it will absorb its wholly-owned subsidiary, Honda Automobile (China) Company Ltd., effective from 1st of April 2020. As a result of this merger, Honda Automobile (China) will be renamed as the Guangzhou Development District Factory of GAC Honda.

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Also, the company has said that with the addition of the 50,000 units production capacity plant of Guangzhou Development District Factory, GAC Honda’s total capacity to roll out vehicles will be 770,000 units a year.

GAC Honda to Absorb Honda Automobiles China 2
Guangzhou Development District Factory of GAC Honda

Honda Automobile (China) was established in 2003 as China’s first automobile production plant dedicated exclusively for export. Striving to advance its production operation to be more flexible and efficient and to improve its business structure, Honda Automobile (China) was made a wholly-owned subsidiary in 2018, and now will be absorbed by GAC Honda. Under the new name Guangzhou Development District Factory, the plant will begin producing Accord for the China domestic market starting in April, while continuing to produce and export the City model for the Mexican market.

Related: Honda Considering to Quit from Australia

GAC Honda says it will continue advancing its production system by increasing efficiency and flexibility and by delivering products that provide value to its customers in a timely manner.

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A 3d animation professional with over 19 years of industry experience, an avid car enthusiast, petrolhead and social media influencer. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com

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