After receiving the formal approval of the Chinese government, Guangzhou Automobile Group Co., Ltd. (Guangzhou Automobile Group) and Hino Motors, Ltd. (Hino) have established a new joint venture, Guangqi Hino Motors Co., Ltd. (Guangqi Hino). As a joint capital investment, Guangqi Hino obtained the license from the related Chinese government department, for the production and sales of commercial vehicles.
For the development of commercial vehicles of Guangzhou Automobile Group and the business development of Hino in China, Guangqi Hino was established in line with the Chinese automobile industry development policy under the support of central government and the local governments of Guangzho and Shenyang cities. The establishment was based on reorganization of Guangzhou Yangcheng Automobile Co., Ltd. (a company invested in by Guangzhou Automobile Group) and Shenyang Shenfei Hino Automobile Manufacturing Co., (a company invested in by Hino). Guangqi Hino continues to produce Yangcheng Automobile’s existing products at its present factory, and is constructing a new factory in Conghua, Guangzhou city, with plans to commence production in the middle of 2009.