Guangzhou Peugeot Automobile Company
Encyclopedia
The Guangzhou Peugeot Automobile Company (GPAC) is a former automobile manufacturer located in Guangzhou
, China
. It was a joint venture
between the Guangzhou government and the French
automobile manufacturer PSA Peugeot Citroën
.
The company was founded on 6 September 1985 and was defunct by March 1997, when Peugeot sold their stake in the joint venture. Manufacturing two models sold via fleet sales, its products were mostly used as taxi
s or by government employees.
After the company had gone defunct, Honda
succeeded where PSA Peugeot Citroën failed cooperating with the Guangzhou government to establish its own joint venture company, Guangqi Honda Automobile
.
One of the first foreign-Chinese joint auto-making ventures, over its eleven-year lifespan the company only recorded production of about 100,000 cars.
Fleet sales began in 1989 and its model line comprised the Peugeot 505
and 504
.
, exacerbated tensions. They were met late if at all, and while the French initially profited from parts sales, the Guangzhou Chinese saw increased component localization lead to inferior products. Peugeot repatriated profits, and cultural conflicts continued throughout. By 1993 a soured PSA Peugeot Citroën saw its now-inferior models out-completed by better offerings, and by 1996 the Guangzhou government decided it no longer wanted a French foreign partner. PSA Peugeot Citroën removed itself in 1997.
Guangzhou
Guangzhou , known historically as Canton or Kwangchow, is the capital and largest city of the Guangdong province in the People's Republic of China. Located in southern China on the Pearl River, about north-northwest of Hong Kong, Guangzhou is a key national transportation hub and trading port...
, China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
. It was a joint venture
Joint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
between the Guangzhou government and the French
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
automobile manufacturer PSA Peugeot Citroën
PSA Peugeot Citroën
PSA Peugeot Citroën is a French manufacturer of automobiles and motorcycles sold under the Peugeot and Citroën marques. Headquartered in the 16th arrondissement of Paris, PSA is the second largest automaker based in Europe and the number eight in the world.-History:In December 1974 Peugeot S.A....
.
The company was founded on 6 September 1985 and was defunct by March 1997, when Peugeot sold their stake in the joint venture. Manufacturing two models sold via fleet sales, its products were mostly used as taxi
Taxicab
A taxicab, also taxi or cab, is a type of vehicle for hire with a driver, used by a single passenger or small group of passengers, often for a non-shared ride. A taxicab conveys passengers between locations of their choice...
s or by government employees.
After the company had gone defunct, Honda
Honda
is a Japanese public multinational corporation primarily known as a manufacturer of automobiles and motorcycles.Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than...
succeeded where PSA Peugeot Citroën failed cooperating with the Guangzhou government to establish its own joint venture company, Guangqi Honda Automobile
Guangqi Honda Automobile
Guangqi Honda Automobile Co Ltd is a Chinese automobile manufacturing joint venture company based in Guangzhou, Guangdong province.A joint venture between Honda Motor and Guangzhou Automobile, it operates two plants that, as of 2009, produce the Honda Accord, Honda City, Honda Fit, and Honda...
.
History
Fleet sales began in 1989 and its model line comprised the Peugeot 505
Peugeot 505
The Peugeot 505 is a large family car produced by the French manufacturer Peugeot from 1979 to 1992 in Sochaux, France. The 505 was Peugeot's last rear-wheel drive car...
and 504
Peugeot 504
The Peugeot 504 is a large family car manufactured by French automaker Peugeot between 1968 and 1983, with licensed production continuing until 2006.-1968 — introduction:...
.
Conflict
Component localization targets, set to encourage creation of a local supply chainSupply chain
A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to...
, exacerbated tensions. They were met late if at all, and while the French initially profited from parts sales, the Guangzhou Chinese saw increased component localization lead to inferior products. Peugeot repatriated profits, and cultural conflicts continued throughout. By 1993 a soured PSA Peugeot Citroën saw its now-inferior models out-completed by better offerings, and by 1996 the Guangzhou government decided it no longer wanted a French foreign partner. PSA Peugeot Citroën removed itself in 1997.