GAC Honda to merge Honda Automobile in China

GAC Honda Automobile also known as GAC Honda, a joint venture company of Japanese automaker in China, on Sunday stated that it will absorb its wholly-owned subsidiary, Honda Automobile (China), effective from April 1 this year.

With this merger, the Honda China plant will be renamed as the Guangzhou Development District Factory of GAC Honda, said the company.

The company has said that with the inclusion of the 50,000 units production capacity plant of Guangzhou Development District Factory, GAC Honda’s total capacity to produce vehicles will be 770,000 units anually.

Honda Automobile (China) was founded in 2003 as China’s first automobile production plant that was committed for export only. In 2018, the company was made a wholly-owned subsidiary of GAC Honda.

The Guangzhou Development District Factory will start production of the Honda Accord for the China regional market in April 2020. Other than that, it will keep producing and exporting the Honda City for the Mexican market, said the automaker.