GUANGZHOU: The officially sponsored vehicles for the Guangzhou 2010 Asian Games will be developed by Guangzhou Automobile Industry Group (GAIG), the company has said.

"We are pushing up development of new brands of self-innovation, which will move off the production line by 2010," GAIG Chairman Zhang Fangyou said.

In an interview with China Daily, the chairman said that the self-innovated-brand project - with an investment of about 6.8 billion yuan - has been approved by the National Development and Reform Commission (NDRC).

The project is located in the Hualong township of the suburban Panyu district, integrating research and development and production facilities.

"After several years of cooperation with overseas counterparts, we have developed our own strengths in terms of technology, market service and financing, enabling us to develop new brands with independent intellectual property rights," Zhang said.

GAIG, one of the mainland's top-50 companies, was founded eight years ago this month, when the Guangzhou Automobile Group Co and Guangzhou Motors Group Co merged.

According to Zhang, the new model's name has not yet been finalized, and the public will be consulted to help.

"After the NDRC approves the project, we will speed up negotiation with equipment suppliers and construction of the manufacturing base in Panyu district," Zhang said.

GAIG, the first prestige partner of the Guangzhou 2010 Asian Games, handed over the first batch of 20 sedans to the games' organizing committee on Sunday.

"We will provide more cars, including the new brands, as well as after-sales service, to better serve the games," Zhang said, adding that games will serve as an important platform for GAIG to promote its products to the world.

Early reports indicate that the company, the parent firm of Hong Kong-listed Denway Motors, is eyeing a dual listing on the mainland and in Hong Kong.

The company has teamed up with domestic and international financial organizations, including China International Capital Corp, JPMorgan, Lehman Brothers Holdings Inc and Morgan Stanley, for its initial public offering plan.

(HK Edition 06/24/2008 page2)