GAC Opens EV Factory in Guangzhou

China’s Guangzhou Automotive Group Co. (GAC) has completed construction of the first phase of its 4.7 billion-yuan ($680 million) electric vehicle factory in Guangzhou.

Production at the 5 million-sq-ft complex is due to begin in May, starting with the all-new Aion S sedan, according to the company. Annual capacity initially will be 200,000 vehicles, with a goal to eventually double that output.

Unveiled earlier this year at the Guangzhou auto show, the Aion S boasts a 500-km (310-mile) driving range. GAC says the vehicle will have Level 2 automated driving capability that eventually could be upgraded to Level 4.

The sedan will be followed later this year by an electric SUV/crossover. Thereafter, the plant (known as GAC New Energy) plans to launch at least two new models per year.

The facility features Industry 4.0 automation and data analytics capabilities that GAC claims will allow for greater flexibility, customization, efficiency and quality control. Production lines will be able to switch from steel- to aluminum-bodied vehicles in less than one minute, according to the carmaker.

Part of the factory’s electricity will be generated from solar and wind energy. GAC began construction of the plant in September 2017.

The industrial park also will include several supplier facilities. Last month GAC and Aisin AW broke ground on a 2.1 billion-yuan ($310 million) joint venture transmission plant that’s due to open by the end of 2020. The facility will produce Aisin’s 6-speed-automatic gearbox, which already is used in several GAC models. The plant will have capacity to build 400,000 transmissions per year.

GAC, which currently sells vehicles under the Gonow and Trumpchi brands in China, aims to expand to Europe later this year. Plans for the U.S. are on hold following the Trump administration’s decision last year to level 25% tariffs on Chinese cars.