GAC Motor Co. will target sales in emerging markets after shelving plans to sell vehicles in North America because of concerns over the ongoing trade dispute between China and the United States.
GAC, as part of plans to enter North America markets, repeatedly participated in the Detroit auto show in recent years. But due to U.S. President Donald Trump's tariffs on Chinese goods, including light vehicles, the company has suspended a plan to distribute vehicles in the U.S., Chairman Zeng Qinghong said at GAC's annual shareholder meeting in May.
ˇ°GAC Motor is committed to realizing a global brand presence and has strengthened efforts to expand international partnerships worldwide,ˇ± Yu Jun, President of GAC Motor, said in a statement this week.
In May, the company opened four dealerships in Ecuador. It established a wholly-owned subsidiary in Russia in April and expects to launch sales of the GS8 crossover there later this year.
GAC has also launched marketing activities in Southeast Asia. In the past few weeks, it sponsored a 12-hour endurance race in the Philippines and the 2019 Miss Universe Myanmar beauty pageant.
Last month, it opened a subsidiary in Hong Kong to work with local financial institutions to offer floorplan financing for dealers outside China and provide loans for overseas buyers.
GAC currently exports vehicles to 16 developing countries.
In 2018, the state-owned automaker delivered 535,168 sedans, crossovers and SUVs under the Trumpchi brand, an increase of 5.2 percent from a year earlier. Company exports surged 69 percent last year, GAC said, without disclosing volume.
GAC also runs passenger vehicle joint ventures with Toyota Motor Corp., Honda Motor Co., Mitsubishi Motors Corp. and Fiat Chrysler Automobiles in China.