Acknowledging the sustained economic performance of the Philippines and in line with their goal of expanding in the ASEAN, China’s Guangzhou Automobile Group Co., Ltd. (GAC Motor) officials visited the Philippines for an investment mission last January 13-18, 2014. The delegation was headed by Mr.Marlon Ma, Regional Sales Director and Mr. Johnny Chin, Regional sales representative.

AGAC Motor is the oldest automotive company in China with its roots tracing back to the 1950’s. The subsidiaries of the group include GAC TOYOTA MOTOR Co., Ltd, GAC HONDA MOTOR Co., Ltd, GAC FIAT MOTOR Co., Ltd, GAC MITSUBISHI MOTOR Co., Ltd, Guangzhou Automobile Group Autobus Co., Ltd, GAC-HINO (Shenyang) Motors Co., Ltd and Wuyang-Honda Motors (Guangzhou) Co., Ltd. The GAC Group sold more than 1 million cars and buses in 2013 with total revenue of US$ 24.15 billion and was ranked 483 of the Global Fortune 500 in 2012.

AIn 2007 the GAC Group invested RMB 3.8 billion Yuan to establish the GAC Motor Co. Ltd. which launched its 1st own brand of cars. The first one was the GA5 sedan. In 2013, GAC Motor sold 100,000 cars under its own brand whose product line cover two types of sedan and a SUV. GAC is now ramping up capacity to produce 400,000 vehicles a year under the GAC brand.

AGAC also invested RMB 3 billion in establishing the GAC Engineering which is the No. 1 automotive engineering facility in China with 1,500 engineers among which, 30% are master degree holders. GAC Engineering has enabled the company to develop its own technology on car engines, suspensions and so on. The engine technology of GAC was co-developed with FIAT and the suspension and chasis system with Alpha Romeo. Based on the 2013 China Initial Quality Study (IQS), GAC Motor’s PP100 score (which counts the number of defects per 100 cars) was 97 which was lower than the industry average of 119. GAC scored better than Dongfeng Honda, Zhengzhou Nissan, Buick, Luxgen and so on. (Please refer to the attachment1) .

AIn a meeting with Commercial Consul Kenneth Yap, GAC Motor executives remarked that they are keen in investing in the Philippines due to the liberal investment environment and the potential of the local market. GAC is looking for local Filipino partners with future plans to assemble cars in the Philippine to export to ASEAN by 2017.

APer the company’s marketing strategy for the Philippines, it will start to export completely built up (CBU) units to the Philippines and establish an after sales service system by 2014-2015. They will put up a joint venture sales company with spare parts center and set-up assembly plant for domestic market (CKD) in 2016-2017. The final goal is to establish a Philippine production hub to re-export to ASEAN and take advantage of AFTA.

GAC MOTORs GAC Motor models 1 From left to right: Mr. Johnny Chin, Regional sales representative Ms. Joey Li, Trade Assistant, PTIC Guangzhou Mr. Kenneth Yap, Commercial Consul, PTIC Guangzhou Mr. Marlon Ma, Regional Sales Director Mr. Allan Liu, Trade Assistant, PTIC Guangzhou 2 3