Guangzhou Auto and Gonow Auto sign JV agreement

Featured, Guangzhou Auto | Ash | July 31, 2009 at 3:51 pm

Gonow Auto, a small privately owned SUV and pick-up truck manufacturer based in Taizhou City, has signed a 50:50 joint venture with Guangzhou Automotive Group.

Details of the JV are still sketchy, but it appears that Gonow has put fixed assets into the deal, whilst Guangzhou Auto are set to invest cash into the deal. The deal will see Guangzhou Auto and Gonow move into Gonow’s Hangzhou facility, but it is unclear if they will continue to build Gonow vehicles, or if Guangzhou vehicles will be introduced. It would be wise to remember that Guangzhou did buy Changfeng Auto, another SUV truck maker who plan to build a new range of pick up trucks in China and also hybrid SUV’s.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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