August 17, 2010

Guangzhou-Gonow, a joint venture between Guangzhou Auto and Gonow Auto, has recently drawn up a preliminary plan to expand its production capacity to 600,000 units in five years, media reported Tuesday.

Guangzhou Auto acquired Gonow Auto, a small privately owned SUV and pick-up truck manufacturer based in Taizhou City, in April this year. The JV’s current three production bases have a designed annual capacity of 300,000 pickups, SUVs, minicars and 300,000 engines in total.

It is reported that former vice president of Automotive Engineering Institute, Chang An Auto has joined the Guangzhou-Gonow JV as vice president of the company and president of the company’s Automotive Engineering Institute.

Moreover, former general manager of Jiangxi Changhe Automobile Co, now a subsidiary of Changan Auto, has also been appointed as president assistant of Guangzhou-Gonow and deputy general manager of the JV’s sales division.

Guangzhou Auto aims to boost its vehicle sales to two million units by 2015, which would help it join China’s top auto groups such as SAIC Motor and FAW Group. It targets sales of 1.3 million units this year.

Gonow SUV and pick-up

ZHEJIANG GONOW AUTOMOBILE CO., LTD. is located in Luqiao Industry District, Taizhou city, Zhejiang Province, P.R. China, GONOW (吉奥汽车) has invested a total amount of USD 50 millions in its first-phase project, covering an area of 268,000 square meters, with annual production capacity of 60, 000 pick-up and SUVs, and 60,000 engines,which is the key project in Zhejiang Province. GONOW has complete workshops of stamping, welding, painting, assembly. In the meantime, it also owns complete test road and national compulsory inspection equipment and procedure. The second phase project of GONOW will occupy a area of over 1,000,000 square meters, with annual production capability of 200,000 Pick-ups and SUVs.

Since GONOW vehicle have been put into market. GONOW has ranked one of the top three in terms of export volume of china for two years in succession, is up to now more than 5, 000 units covering most areas of the Middle East, northland western part of Africa, Ukraine, Russia, and Latin American area. GONOW succeeds in launch the GONOW series vehicle into the European’s market on June of 2005. GONOW vehicle is the first one designed and produced in accordance with the standard of Europe III, GONOW vehicle are well received in the world, because we insist in the principle that ” business is based on quality, and service is above everything else “. At present, the overseas center of technological service is established, to fully guarantee to offer the sufficient fittings supplying and high-quality technical training to parts agents in the world in the quickest time. In addition, GONOW Automobile also launches the collaborative projects of SKD and CKD with global many automobile enterprises. We believe that, GONOW Automobile will stand out of global automobile industry in the near future with the image of determination, and aggressive.

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Right, I would like to some only 5 BIG car companies and 5 SMALL car companies in the end.


“Guangzhou Auto acquired Gonow Auto, a small privately owned SUV and pick-up truck manufacturer based in Taizhou City, in April this year.’

Gonow has not (yet) been fully acquired by GAC, but rather the former retains a 49 percent share of the new joint venture. This venture is however, a positive move toward consolidation of a quite fragmented industry.