Guangzhou Honda to Build a new Automobile
Guangzhou Honda Automobile Co., Ltd. (GHAC),
Honda’s automobile production and sales joint venture in China,
announced the establishment of a wholly-owned R&D subsidiary in
China. With an investment of approximately 2 billion R.M.B.
(approximately 30 billion yen*), the new Honda subsidiary,
Guangzhou Honda Automobile Research & Development Co., Ltd.,
will build an automobile R&D facility accompanied by a
full-scale high-speed test course.
The company will develop a new
automobile product which will be marketed under an original
brand of Guangzhou Honda targeting the start of sales in 2010. *
Calculated based on the exchange rate of 1 R.M.B.= 15 yen
This new vehicle, which will be a
unique product that incorporates various needs specific to the
Chinese market, will be developed primarily by the R&D
subsidiary of Guangzhou Honda while receiving support from Honda
To market this vehicle, Guangzhou Honda
plans to use an original Guangzhou Honda brand, which will be
differentiated from the Honda brand. This will be the first time
a joint venture company of a foreign automaker will develop and
market a product under an original brand of the joint venture
company in China.
Since the start of production in 1999,
Guangzhou Honda has been steadily establishing a business
foundation in China through various efforts including: expanding
production capacity consistent with increasing sales, increasing
local content, and strengthening of the dealer network.
The establishment of an R&D center in
China represents the company’s commitment to achieve greater
autonomy in the area of R&D, in addition to production and
sales, to position the company for further growth in the future
as a joint venture company deeply rooted in the local market.