GAC mo­tors ahead with new plant

China Daily (USA) - - BUSINESS - By QIUQUANLIN in Guangzhou qiuquanlin@chi­nadaily.com, cn

GACMo­tor Ltd, the Chi­nese car­maker fo­cus­ing on re­search and de­vel­op­ment of home­grown ve­hi­cles, launched op­er­a­tions at its sec­ond as­sem­bly plant on Wed­nes­day, which aims to meet grow­ing de­mand for high-end ve­hi­cles.

The new fa­cil­ity, lo­cated in Guangzhou and in­stalled with smart man­u­fac­tur­ing equip­ment, will help ex­pand the com­pany’s pro­duc­tion ca­pac­ity to 400,000 ve­hi­cles per year, ac­cord­ing to the com­pany.

“Launch­ing the new pro­cess­ing line will help fa­cil­i­tate re­search and de­vel­op­ment of home­grown ve­hi­cles,” said Wang Qi­u­jing, di­rec­tor of the GAC Au­to­mo­bile Engeer­ing In­sti­tute.

Sales of GAC Mo­tor, which was es­tab­lished in 2008, in­creased by 170 per­cent yearon-year to 159,000 units in the first half of this year, ac­cord­ing to the com­pany.

“The do­mes­tic mar­ket in re­cent years has de­vel­oped huge de­mand for home­grown ve­hi­cles with high qual­ity but rel­a­tively lower prices, when com­pared with joint-ven­ture car­mak­ers,” Wang said.

Prior to the launch of the sec­ond as­sem­bling fa­cil­ity, de­mand for the com­pany’s car mod­els, es­pe­cially the star SUV GS4, ex­ceeded the com­pany’s pro­duc­tion ca­pac­ity, ac­cord­ing to GAC Vice-Gener- alMan­ager Xiao Yong.

“The boom­ing mar­ket has made us be more con­sis­tent with our goal — to de­velop high-qual­ity cars. We have seen a big sales in­crease over the past few years and our brand has been well pro­moted,” Xiao added.

Fol­low­ing the pro­duc­tion ca­pac­ity ex­pan­sion, the com­pany said it will launch at least seven new mod­els within the next five years.

Also Wed­nes­day, the com­pany’s newly de­vel­oped SUV GS8 and plug-in hy­brid ve­hi­high-end cle GA3S PHEV came as­sem­bling line.

Sales of the seven-seat GS8, which is as large as Ford’s Edge in size, will be launched in Oc­to­ber, the com­pany said.

“The GS8 is based on GAC Mo­tor’s C-class plat­form, which will help in­crease ef­fi­ciency in pro­duc­ing new­mod­els and boost prof­its,” said Xiao.

The GS8 fol­lowed the C-class sedan, the GA 8, which was launched in April. Us­ing that plat­form, one more high­end MPV GM8 will be launched later this year.

“The C-class plat­form shows China’s ca­pa­bil­ity for making lux­ury cars — a trend that we are po­si­tioned to fol­low in the com­ing years,” said Xiao.

Ac­cord­ing to Xiao, the Chi­nese auto mar­ket will be dom­i­nated by home­grown ve­hi­cles in the next five to eight years.

“China is ca­pa­ble of be­com­ing a su­per­power in re­search and de­vel­op­ment of world­class ve­hi­cles, as do­mes­ti­cally de­vel­oped ve­hi­cles have steadily im­proved both in brands and qual­ity, as well as safety,” said Xiao. off the

Sales of GACMo­tor in the first half of this year

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