Tan Chong Motor signs MoU for potential sale and assembly of GAC vehicles in Malaysia and Vietnam

Tan Chong Motor Holdings (TCMH) has announced that its wholly-owned subsidiary, TC Overseas Assets Holdings Labuan (TCOAHL), has entered into a memorandum of understanding (MoU) with GAC Motor International.

According to a filing on Bursa, the deal serves as a study on the potential and feasibility of selling and assembling GAC models in Malaysia and Vietnam. GAC International is a wholly-owned subsidiary of Guangzhou Automobile Group Motor, which is turn is part of Guangzhou Automobile Group, otherwise known as GAC Group. The MoU remains valid until July 1, 2021, unless revised by mutual agreement in writing.

GAC International is a wholly-owned subsidiary of Guangzhou Automobile Group Motor, which is turn is part of Guangzhou Automobile Group, otherwise known as GAC Group. There are several brands within GAC Group, including Trumpchi, Gonow and Changfeng Motor (Leopaard).

“The proposed project, if materialised, would provide TCMH Group with the opportunity to further expand its foothold in the automotive industry in the region,” said TCMH in an official statement.

“The MoU will not have any effect on the earnings per share, net assets per share and gearing of TCMH Group for the financial year ending December 31, 2020, and has no effect on the share capital of TCMH and shareholdings of its substantial shareholders,” it added.

The post Tan Chong Motor signs MoU for potential sale and assembly of GAC vehicles in Malaysia and Vietnam appeared first on Paul Tan's Automotive News.

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