Shanghai (Gasgoo)- Guangzhou Automobile Group Co., Ltd. (GAC) will build a factory in the United States at the end of next year, Zeng Qinghong, chairman of GAC restated their determination recently.
Currently, GAC’s products have entered into many countries in Africa and the Middle East. The company hopes that their products can have an opportunity to embrace the challenge in the United States and they are confident that the products are surely up to the standards of the target country.
As to the tariff increase in the United States, the chairman said that the trade protection will be a big challenge. But as long as the company boasts competitive products, it is still likely for the company to gain shares. What matters much is to reduce cost and to win preference from customers.
Zeng Qinghong also emphasized that his company will review the cost, including the cost of the product itself, the freight and the insurance expenses. “If we can accept the total cost, we will continue the foray. If not, we will cancel or put off the plan to enter into the United States Market.”
As to the overseas transactions of Geely, Zeng Qinghong said GAC has no plans for merger and acquisition at the moment. Relatively, the going-out of the company matters more than the merger. And also currently, the group has no plan to set joint projects with FCA, but he did not rule out the possibility for future cooperation. “Up to now, we haven’t talked about the cooperation at the capital level."
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