Gasgoo Munich- On September 16 that Masayuki Igarashi, Managing Executive Officer, Honda Motor Co., Ltd. and Head of its China operations, officially addressed the market speculation. His comments came after FAW Group acquired a stake in GAC Group, fueling rumors about a potential integration of Honda's joint ventures in the north and south of the country.Igarashi made it clear that this shift in shareholding will not disrupt GAC Honda's day-to-day operations. The existing business model and partnership structure, he said, will remain intact.Image Source: Honda ChinaAddressing the widespread speculation about a merger between its northern and southern joint ventures, Igarashi offered a definitive answer. He noted that the joint venture agreement with Dongfeng Motor is still in effect, while the partnership with GAC was only recently renewed. Given these arrangements, Honda is not considering a merger of the two ventures at this time.Dongfeng Honda's joint venture contract has been extended through 2043, while GAC Honda recently prolonged its agreement to 2038.Public filings show that on September 14, GAC Group announced a major strategic transaction confirming FAW Group as its second-largest shareholder. However, the Guangzhou State-owned Assets Supervision and Administration Commission remains the actual controller, meaning the deal will not shift control of the listed company.
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