Isuzu has already pulled out its capital from Guangzhou Isuzu earlier this year, and the company has now been fully integrated into Denway Passenger Car under the Guangzhou Automobile Group (GAC). A high-level source from GAC, who preferred to remain anonymous, shared this information with a local newspaper. "Now I can finally speak publicly about it," the source said. "With the consolidation of the passenger car segment, GAC Bus is expected to be officially established in the second half of this year, and will use the Guangzhou Automobile brand."
The source also mentioned that GAC Auto's own brand will now form two major passenger car segments within the GAC Group, alongside Shenyang Automobile’s Shenfeng Hino.
Despite the withdrawal, the Isuzu trademark is still available for use until July 1st this year, according to the GAC executive. "We can still use the Isuzu logo, and Isuzu will continue to supply related components," he added. The Guangzhou Yuangang plant, previously used by Guangzhou Isuzu, will continue to produce Denway-branded buses.
Isuzu’s decision to exit Guangzhou Isuzu comes as another example of international automakers losing ground in the Chinese market. Earlier reports suggested that Isuzu Motors planned to sell its 49% stake in Guangzhou Isuzu Bus Co., Ltd. to GAC by the end of March this year.
Established in March 2000, Guangzhou Isuzu Bus Co. was jointly owned by GAC (51%) and Isuzu (49%). With a registered capital of $46.8 million and a site covering 100,000 square meters, the company was once seen as a key player in the bus sector. However, over the years, its performance fell short of expectations. According to internal sources, Guangzhou Isuzu failed due to inflexible sales strategies and high operational costs relative to its small production scale.
Initially, the company aimed to produce 800 vehicles and 400 chassis annually, but actual output remained below 200 units per year. Many of its vehicles were distributed through administrative channels rather than the open market. This led to long-term losses and a lack of competitiveness, prompting Isuzu to withdraw.
After exiting Guangzhou Isuzu, Isuzu is now focusing on its Qingling Auto operations in Chongqing. The two companies still collaborate through the Qingling Isuzu (Chongqing) Automobile Sales Company, with each investing $2.3 million. However, Qingling has struggled against stronger competitors like Futian, Jiangling, and Dongfeng.
GAC has taken steps to integrate its passenger car business, including the successful reorganization of GAC Guangzhou Yangcheng and GAC Denway in early 2007. After a year of adjustments, the company turned profitable and successfully absorbed Guangzhou Isuzu into the Denway Passenger Car division. This expansion has significantly broadened the product line, ranging from 6- to 12-meter buses with capacities from 16 to 55 passengers.
The China-Pakistan series, formerly known as "Yangcheng Passenger Cars," now accounts for 80% of the mid-to-high-end CMB bus market in Guangzhou. GAC's passenger car exports have grown rapidly, with annual growth rates exceeding 100%.
Looking ahead, GAC plans to establish GAC Bus in the second half of this year, using the Guangzhou Automobile brand. "As with passenger cars, we are equally focused on building our own bus brand," the source said. "We are providing strong financial support and believe that Guangzhou already has the potential to develop a strong brand in the bus market."
The goal for GAC Bus is to become a well-known brand in economically developed regions, with products tailored to local needs. The five-year plan includes ambitious sales targets, aiming to reach 2,000 units this year—double the previous year’s figure.
To prepare for this, GAC is streamlining its sales channels and optimizing its workforce. This strategic move is part of a broader effort to strengthen its position in both the passenger car and bus markets.
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