China’s GAC Launches Russia Unit

Guangzhou Automobile Group Co. (GAC) has launched a subsidiary in Russia—its first such unit outside of China—with plans to begin sales there next year.

Announced at this week’s Moscow auto show, GAC Motor RUS recently begun recruiting dealers. The carmaker aims to win “customer recognition” in Russia and neighboring countries within the next five years.

Earlier this year GAC formed two units to manage and grow its overseas business. In addition to the Russian unit, GAC is opening offices in Africa, the Middle East and South America as it expands its sales presence from 14 countries to 18 this year.

GAC also plans to begin U.S. sales of its GS8 crossover vehicle late next year. To support the effort, the Chinese company exhibited at the Detroit auto show in January and participated at the National Automobile Dealers Assn. conference in Las Vegas in March.