Guangzhou Auto signs JV deal with Chinese private automaker
August 07,2009
China state-owned Guangzhou Automobile Group Co. (GAC) has signed a framework agreement with Zhejiang Gonow Auto, a private-owned pickup manufacturer, on building a 50:50 joint venture in the east China city of Hangzhou, according to Chinese media reports.
Miao Xuezhong, president of Gonow Auto, told Sina.com that the company did reach an initial agreement with GAC on a JV deal but the two sides are still working on details.
Citing an informed source, Beijing Youth Daily said that the two sides would make joint investment to set up a joint venture in Xiaoshan, Hangzhou, based on Gonow's existing facility there. Gonow will invest in terms of fixed assets while GAC will inject cash.
The investments will go towards the expansion of facilities and introducing an enhanced range of products and businesses in the country.
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