Eight years after the conclusion of the marriage, GAC and Japan’s Isuzu Motors will soon “break up”. The reporter learned from Guangzhou Automobile Group that the largest truck manufacturer in Japan, Isuzu Motors, plans to sell its 49% stake in Guangzhou Isuzu Bus Company to GAC by the end of March. As a result, Guangzhou Automobile Group, which is actively preparing for the overall listing, will bring about an opportunity to reorganize the commercial vehicle segment.

It is reported that the cause of Isuzu’s withdrawal is due to fierce price competition in the Chinese market and sluggish domestic ultra-luxury passenger car market. The low-cost passenger cars of Chinese local and Korean manufacturers almost covered the entire market, and Isuzu’s sales of high-end products have been hit hard. Although the annual capacity of the Guangzhou Isuzu Bus is 1,000, it only produces 150-200 buses a year, and the loss is several million dollars a year.

In March 2000, Guangzhou Isuzu Bus Co., Ltd. was established with a joint venture period of 20 years. The registered capital of the company is 46.8 million U.S. dollars, among which GAC Group and Japan Isuzu Motors respectively hold 51% and 49%. Guangzhou Isuzu Bus Co., Ltd. had planned to produce 800 vehicles and 400 chassis. However, according to statistics from the China Association of Automobile Manufacturers, Guangzhou Isuzu Bus Co., Ltd. actually produces less than 200 buses a year.

According to industry sources, the direct reason for the divestment of Isuzu cars is that the sales of Guangzhou Isuzu products are not smooth and it is difficult to reach the expected joint venture, and the deeper reasons are related to the overall strategic adjustment of commercial vehicles of GAC Group. According to sources, Guangzhou Automobile Group and Toyota Motor Co., Ltd., after reorganizing Hino Motors, are about to start reorganizing their passenger car assets, leading to the exit of the Isuzu Motors that are in conflict with the Hino Project, and even the Yangcheng Passenger Bus will be reorganized.

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