- Jul 18, 2007
Honda's Chinese joint-venture to develop own brand
Foreign car makers have formed partnerships with Chinese auto firms in order to make vehicles sold as one of the existing brands. One of Honda's partnerships builds Honda Fits for the Euro market. Another of Honda's joint ventures is with Guangzhou Automobile, a state-run enterprise, that created Guangzhou Honda. That tie-in is about to do something new, in creating a third brand for the Chinese market. The first step will be establishing an R&D subsidiary to oversee the project. The size of the investment hasn't been disclosed, however, it was asserted by unnamed sources that it would exceed the funding normally allotted to these kinds of ventures by standalone Chinese companies.
[Source: Just-Auto, sub req'd]