On April 25, GAC Group and Geely Automobile both announced that their subsidiaries signed a contract with Aisin AW on April 24, and a joint venture company will be established to manufacture auto parts such as transmissions.
Guangzhou Automobile Group announced that its wholly-owned subsidiary, GAC Passenger Car and Aisin AW Co., Ltd. signed a joint venture contract in Beijing on April 24, and plans to jointly establish an automatic transmission joint venture company in Guangzhou. The total investment of the project is 350 million US dollars. Among them, the Guangzhou Automobile passenger car will invest 40.68 billion US dollars according to the 40% shareholding. The joint venture company mainly produces FF6 speed automatic transmission (AT), with an annual production capacity of 400,000 units. It is expected to be put into operation within 2020. .
On the same day, Geely Automobile also issued a notice stating that on April 24, its indirect subsidiary Geely Luoyou entered into a joint venture agreement with Aisin AW. The two parties agreed to form a joint venture company, mainly engaged in the manufacture of front-wheel drive 6-speed automatic transmission and related spare parts. And sales.
According to the agreement, the joint venture company will be owned as to 40% and 60% by Geely Luoyou and Aisin AW respectively. The registered capital of the joint venture company will be US$117 million, which will be 40% in cash by Geely Luoyou and 60% in cash by Aisin AW; Geely Luoyou and Aisin AW will own 40% and 60% respectively.

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