Automotive News   |   Automotive News Europe   |   Autoweek   |   Automobilwoche

Automotive News China Newsletter
Register our free newsletter, sent each Monday and Thursday

     Automakers   Suppliers   Auto Show   Comment   Car Cutaway   Newsletters   Press Releases   Register for Newsletter
  Contact Us:   Editorial   Advertising   Subscription Information   |   About Us   Media Kit
Home >> Automaker Email this story   Print this story
GAC President Feng Xingya
GAC partners have no plans to raise stake in JVs, top exec says
Automotive News China | 2019/4/19

Guangzhou Automobile Co.¡¯s partners don¡¯t plan to increase their stakes in Chinese joint ventures, GAC President Feng Xingya told journalists at the Shanghai auto show.

State-owned GAC runs 50-50 partnerships with Toyota Motor Corp., Honda Motor Co., Mitsubishi Motors Corp. and Fiat Chrysler Automobiles.

GAC has held discussions with foreign partners after Beijing pledged last year to ease ownership rules on joint ventures with foreign carmakers producing in China, according to Feng. 

¡°During our communications, our partners have made it very clear that they want to maintain the status quo, with no intent or plans to change the shareholding structure of the joint ventures,¡± he said. 

The company¡¯s foreign partners recognize the valuable role GAC plays in the joint ventures, he added. 

One of the latest contributions GAC has made to partnerships is to arrange for electric vehicles to be built at the joint ventures, earning carbon credits as required under Chinese rules. 

FCA, which mainly assemble SUVs for the Jeep brand at its partnership with GAC, will be the main beneficiary of the arrangement. 

The more valuable a Chinese automaker is to a joint venture, the less likely its foreign partner would seek a majority stake in the partnership, according to Feng.

As a result, any change in ownership mix will vary among the joint ventures that global automakers have established with local companies, he noted. 

In June 2018, the Chinese government agreed to phase out by 2022 the 50-percent cap on foreign passenger vehicle makers¡¯ interest in partnerships with local automakers. 

In October, Brilliance China Automotive agreed to let BMW increase its stake in their joint venture to 75 percent from 50 percent in 2022.

In March, Volkswagen Group Chairman Herbert Diess said the company was evaluating the possibility of raising stakes in China-based joint ventures. 

The Chinese government has dropped a requirement that global EV makers form local joint ventures to sell in the country. As a result, U.S. EV maker Tesla Corp. established a wholly-owned production subsidiary in Shanghai last year. 

Beijing has also agreed to remove by 2020 the 50-percent cap on foreign commercial vehicle manufacturers¡¯ interest in local partnerships.

Related Stories
  • Daimler's incoming CEO will push alliances to cut costs, notably on EVs
  •     --Published:2019/13/5
  • German automakers' strategies differ on changing China JV stakes
  •     --Published:2019/3/5
  • Why VW may become 2nd foreign automaker to gain control of China JV
  •     --Published:2019/12/4
  • GAC to launch Russia sales this year
  •     --Published:2019/9/4
  • GAC creates ride-hailing JV with Tencent
  •     --Published:2019/5/4
  • For global automakers, the urgent but delicate need to take control of China JVs
  •     --Published:2019/22/3
  • Zotye, GAC make connections at NADA to build retail network
  •     --Published:2019/5/2
  • GAC selects Calif. for regional HQ as U.S. debut looms
  •     --Published:2019/18/1
  • GAC: Electrified vehicles to make up 10% of 2020 sales
  •     --Published:2018/27/11
  • Big automakers set to sell same car to game Beijing rules
  •     --Published:2018/6/11
  • Honda, GAC Group to produce plug-in hybrids, EVs in China
  •     --Published:2018/2/11
  • GAC may delay U.S. plans in wake of trade spat
  •     --Published:2018/5/10
  • Suzuki, citing sluggish sales, unwinds China JV, exits market
  •     --Published:2018/7/9

    Our Newsletter Editions
    Automotive News China produces two email newsletters each week. You can sort your news by the articles highlighted in each of our newsletters here.

    Select your newsletter     


    Automotive News China
    Room 1303, Building 2, Lane 99, South Hongcao Road,
    Shanghai 200233
    Telephone: 86-139-1851-5816
    Fax: 86-21-6495-0895
    Home | Help Center | About Us | Privacy Policy | RSS
    Entire contents © Crain Communications, Inc.
    Use of editorial content without permission is strictly prohibited. All Rights Reserved.