New company announces plans to make 500,000 cars a year
22 May 2009

Two of China's major car manufacturers have merged to create Guangzhou-Changfeng Auto, with the goal of producing 500,000 cars per year.

Guangzhou Auto has bought a controlling 29 per cent of Changfeng Motors. Changfeng Motor Group is the second biggest shareholder in the company, holding 22 per cent of the shares.

The deal will add sport-utility vehicles to Guangzhou Auto’s product line-up, which already includes cars made through ventures with Toyota and Honda.

Analysts say the deal is beneficial to both companies as Changfeng lacks capital and Guangzhou Auto is short of SUVs. Changfeng is part-owned by Mitsubishi.

In addition, the new Guangzhou-Changfeng Auto company has pledged to invest about 10 billion yuan ($1.47 billion) in its facilities in the Hunan province over the next five years, so that it has the capacity to build 500,000 cars a year.

The move is consistent with China’s push to combine some of the nation’s roughly 130 automakers to help build stronger companies that can compete globally.

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • Citroën C3 Aircross
    First Drive
    17 October 2017
    It's got funky looks and a charming interior, but it's another small SUV, and another dynamic miss. Numb steering is just one thing keeping it from class best
  • Skoda-Karoq 2.0 TDI 4x4
    First Drive
    16 October 2017
    Diesel version of Skoda’s junior SUV is unobtrusive and undemanding, but we’d still go for the silkier petrol version of the Karoq
  • Audi Q7 e-tron
    First Drive
    16 October 2017
    Expensive and flawed but this understated diesel-electric Audi Q7 has a lot to offer
  • Citroën C3
    First Drive
    16 October 2017
    Is the third gen Citroën C3 ‘fresh and different’ enough to take on its supermini rivals? We spend six months with one to find out
  • BMW X3
    First Drive
    15 October 2017
    A satisfying rework of the X3 that usefully improves its handling, cabin finish, space and connectivity to make this BMW a class front-runner again