Guangzhou Automobile Industry Group's bus company was formally established yesterday, signifying the Chinese major automaker completed reshuffling of its commercial vehicle branches.

The newly established Guangzhou Bus Co Ltd is the integration of Guangzhou Yuelong Bus Co Ltd and Guangzhou Denway Bus Co Ltd. "Guangzhou Bus will mainly produce its own brand of coaches, and the production value is expected to reach 300 million yuan (US$43.8 million) this year," says Deng Tao, general manager of Guangzhou Bus.

When Isuzu withdrew from Guangzhou Isuzu Bus Co Ltd, a venture with Guangzhou Automobile Industry Group, at the beginning of this year, Guangzhou Auto integrated its 51 percent assets in Guangzhou Isuzu to the newly established Guangzhou Yuelong Bus Co Ltd.

Meanwhile, Guangzhou Denway Bus Co Ltd is a 50-50 partnership between Hong Kong China Lounge Investments and Guangzhou Automobile Industry Group. Guangzhou Denway Bus has captured 80 percent of the niche market in Guangzhou, the capital of Guangdong Province.

All previous Denway-, Yangcheng- and Isuzu-branded buses will be integrated into the Guangzhou Bus brand, and the new company's production line will cover 6-meter to 12-meter long city buses and highway coaches, with passenger capacity ranging from 16 to 55 people.

At the end of last year, Guangzhou Automobile Industry Group reorganized Guangzhou Yangcheng Automobile Co Ltd and Shenyang Hino Automobile Manufacturing Co Ltd by forming Guangqi Hino Motors Co Ltd, which produces heavy trucks, towing vehicles, and diesel engines for commercial vehicles.

Guangqi Hino's new factory in Guangzhou will also begin production next year, with an annual capacity of 20,000 heavy trucks.

Insiders from Guangzhou Automobile Industry Group say the auto group won't exclude the possibility of further reorganization of its commercial vehicle department, as reported by China Business News on Wednesday.

(China Daily September 18, 2008)