GAC Group suspends trading, rekindling restructuring rumors.

On the morning of September 14, GAC Group suspended trading. According to the Shanghai Stock Exchange's suspension and resumption information, GAC Group suspended trading for the entire day of September 14 due to undisclosed important matters.

A representative from GAC Group responded to Wall Street News, stating that GAC Group will disclose relevant announcements in accordance with exchange rules. Please see the announcement after the market closes today for specific information.

A representative from GAC Group's investor relations department stated that the trading suspension is rather temporary, and a major announcement is expected after the market closes.

Market rumors suggest that FAW and GAC may undergo a strategic restructuring. GAC has not officially responded to these rumors.

Mergers and acquisitions in the automotive industry have recently been brought up again by the relevant authorities. At a press conference held by the Ministry of Industry and Information Technology on September 11, Shao Ji, Deputy Director of the Industrial Development Department of the National Development and Reform Commission, stated that the commission will support large enterprise groups in carrying out reforms, promote mergers and acquisitions among enterprises in accordance with market principles and the law, and support leading enterprises in integrating R&D and production resources to reduce homogeneous competition in product design and technology development.

This statement also includes encouraging all types of enterprises to leverage their unique strengths, cultivate different market segments, foster differentiated competition, and drive the industry to improve quality and efficiency.

FAW Group, headquartered in Changchun, is a state-owned automobile enterprise under the supervision of the State-owned Assets Supervision and Administration Commission of the State Council. Its business spans passenger cars and commercial vehicles, and it owns independent brands such as Hongqi, Bestune, and Jiefang, as well as joint ventures such as FAW-Volkswagen and FAW-Toyota.

According to data released by FAW, its total vehicle sales exceeded 3.302 million units in 2025, a year-on-year increase of 3.2%. Among them, joint venture brand sales reached 2.362 million units, self-owned brand sales exceeded 940,000 units, and self-owned new energy vehicle sales exceeded 366,000 units. Joint venture business still accounts for the majority of its sales.

GAC Group is listed in both Shanghai and Hong Kong, with its controlling shareholder being GAC Industrial Group. Its subsidiaries include its own brands such as Trumpchi, Aion, and Haobo, as well as two major joint ventures: GAC Toyota and GAC Honda. The first model under its Qijing brand, developed in cooperation with Huawei, the GT7, entered mass production in the first half of this year.

GAC Group faces pressure to digest its production capacity. According to its 2025 annual report, GAC Trumpchi and GAC Aion had capacity utilization rates of 46% and 54% respectively, while GAC Honda's was 59% and GAC Toyota's was 76%. There is a significant difference in capacity utilization between its own brands and joint ventures.

In the past two years, GAC Group has been promoting internal reforms. According to its semi-annual report, the company is promoting the integrated operation of its own brands, streamlining R&D, production, supply chain, sales and service, and establishing business units such as Haobo Aion, Trumpchi, and powertrain.

In the first half of this year, GAC Motor sold 773,100 vehicles, a year-on-year increase of 2.35%, of which 346,000 were its own-brand vehicles, a year-on-year increase of 35.69%. While sales rebounded, profitability remained under pressure: the company reported a net loss attributable to shareholders of RMB 4.467 billion in the same period, compared to a loss of RMB 2.538 billion in the same period last year.

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