Apr. 28, 2010 (China Knowledge) – Guangzhou Automobile Group Co Ltd, the Chinese partner of Honda Motor and Toyota Motor, on Monday signed a cooperative agreement with privately-owned Chinese auto maker Gonow Auto Co Ltd to set up a 51:49 joint venture, the state-owned Xinhua News Agency reported.
According to the report, Guangzhou Automobile will provide the capital while Gonow Auto will provide the auto-related assets.
Zeng Qinghong, general manager of the company, said the cooperation is expected to help Guangzhou Automobile expand its mini-vehicle business and gain a larger share of the South China market.
Gonow Auto sold 48,000 vehicles last year and aims to sell 80,000 this year.
Located in Taizhou, Zhejiang Province, Gonow Auto principally produces pickup trucks, sport-utility vehicles and minivans, according to the firm's website.
Last year, Guangzhou Automobile bought a 29% stake in Hunan Changfeng Motor Co<600991> for RMB 1 billion, becoming the largest shareholder of the SUV maker.
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