In China, any foreign manufacturer is required for a joint venture with a local company. This is why you see names such as SAIC-Volkswagen, BMW Brilliance, or FAW-Toyota. In the case of Honda, they saddled up with GAC to be able to operate in China.

Now, GAC has announced that it has absorbed Honda's export production operations in China. Just to clarify, this doesn't mean that GAC will take over Honda's joint venture with another partner which would be Dongfeng-Honda. This simply means the GAC now has a much larger control over Honda's automotive operations in the country. With that, the new entity will now be called Guangzhou Development District Factory of GAC Honda.

When Honda first set foot in China, their intention was to build cars for export and not for local consumption. Honda then partnered up with GAC and Dongfeng to make cars for the Chinese market. Honda Automobile China exports vehicles to Russia, the Middle East, Mexico, and Africa. Prior to this, GAC owned a 25 percent stake in Honda Automobile China, while Dongfeng had 10 percent. GAC now owns 100% of the shares.

With this new arrangement in place, the GAC-Honda assembly line will now roll out the ninth-generation Accord from that plant. At the same time, exports for the Honda City to Mexico will continue. As for the Dongfeng partnership, its current status is unknown.

GAC Honda currently builds the ninth-generation Accord, City, Jazz, Odyssey, and HR-V. They also assemble China-only Hondas such as the Avancier, Breeze, and Crider. Chinese market Acuras are also made by GAC, namely the CDX (based on HR-V, China-only), RDX (CR-V platform), and TLX-L.