Tokyo, July 20 (Jiji Press)–Honda Motor Co. said Monday that the major Japanese automaker and its Chinese partner, Guangzhou Automobile Group Co., or GAC Group, have signed an agreement to extend the contract term of their joint venture business until 2038. Amid slumping vehicle sales in China, attention had been paid to the fate of the Honda-GAC Group contract as its 2028 expiration was approaching. The signing took place in early July. “By fully leveraging the respective technologies and resources of Honda and GAC Group, and continuing to offer products that meet the diverse needs of customers, Honda will further strengthen its automobile business in China,” the Japanese company said. The two firms’ joint venture, GAC Honda Automobile Co., was established in 1998. It is producing the Accord sedan and the Avancier, an SUV model. One of its plants has been shut since this month due to poor sales. GAC Honda, based in Guangzhou, the capital of the southern China province of Guangdong, is owned 50 pct by state-owned GAC Group, 40 pct by Honda and 10 pct by Honda Motor (China) Investment Co. END [Copyright The Jiji Press, Ltd.]
Honda, China’s GAC Group Extend Joint Venture Term until 2038
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