GAC to set up North America R&D center

Chinese carmaker plans facility to focus on new technologies and help expand global presence

GAC Motor Ltd, a subsidiary of the Guangzhou Automobile Group Co, will establish a research and development center in North America by the end of this year, aiming to facilitate its global expansion, according to a senior company engineer.

GAC Motor head designer Zhang Fan said the new facility, which will focus on new technology and new-energy vehicles, would help the company boost its presence in the developed market.

"For Chinese homegrown carmakers, it is of great importance to enter the developed markets, especially North America and Europe as they are evolving to become global brands," Zhang said.

GAC Motor, based in Guangzhou, the capital city of Guangdong province, was established in 2008 and has become a fast-growing carmaker, which has seen rapid increases in revenue.

The company said it had sold more than 256,000 vehicles during the first nine months of the year, a massive 138 percent year-on-year increase.

"We will prioritize new technologies, for example, unmanned driving and new-energy vehicles, at the North American R&D center," Zhang said.

Zhang was speaking after GAC Motor launched sales of its latest GS8, a seven-seat SUV priced between 160,000 yuan ($23,600) and 260,000 yuan, in Hangzhou, the capital of Zhejiang province, on Wednesday.

"After years of effort building Chinese homegrown vehicles, with high quality, safety and design features, we are confident about entering the developed markets to promote our brand and boost our presence," Zhang said.

The company said the GS8 would challenge the domestic seven-seat SUV market, which has been dominated by foreign brands such as the Toyota Highlander and Ford's Edge."The market demand for larger SUVs is increasing, fol-lowing China's policy of allowing a couple to have two children," said Xiao Yong, deputy general manager of GAC Motor.

According to the China Association of Automobile Manufacturers, sales of seven-seat SUVs grew 83.5 percent year-on-year in 2015.

According to Xiao, sales of the GS8 are expected to reach about 100,000 units next year.

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