:《A 30-Year Turning Point for Honda China Arrives!》
According to reports, Dongfeng Honda Engine Co., located within GAC Honda's main plant, is set to be acquired and dissolved by GAC Honda in the near future. This marks a major shake-up not only for Honda China but also for the entire joint-venture auto ecosystem in 2025.
Once the merger is complete, GAC Honda will become a truly independent legal entity among joint-venture auto companies, while Dongfeng Honda in Wuhan will reduce part of its excess production capacity. This development removes the final hurdle for both joint-venture companies to extend their cooperation agreements. GAC Honda's current JV agreement is due to expire on May 13, 2028, while Dongfeng Honda's runs until 2043.
As a dominant player in China's automotive landscape, major joint-venture auto companies are gradually approaching the end of their operational terms. Amid the rapid rise of domestic automakers and the mainstreaming of smart electric vehicles, the big question is whether to continue the partnerships, split ways, or fully localize operations. Whatever the path forward, it's an incredibly difficult decision.