Guangzhou Automobile Group – which has an expanding joint venture with Toyota – plans to extend its own operations in China and set up two new factories. The company will spend CNY6bn (US$968m) on these plants which will open in 2016 and 2018.
Each of these factories will have an initial production capacity of 200,000 units per year, Reuters reported.
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Guangzhou Automobile general manager Wu Song said: “In the rapid growth of the Chinese car market in the last four years, we were laying a foundation, building our core competitive strengths, for example in R&D, manufacturing, quality and efficiency controls and sales. Under the new economic normal, this is the GS brand’s high growth opportunity.”
Both plants are expected to be located outside Guangdong province in China.
The company has a production target of 160,000 to 200,000 vehicles for 2015. Further, it aims to manufacture 500,000 cars per year by 2017 and 1m cars by 2020.
Meanwhile, Guangzhou is seeking dealers in the US for its 2017 launch there.
