China Knowledge reported that Pangda Automobile Trade Co Ltd, China largest listed car distributor has agreed to cooperate with South Korean automobile maker SsangYong Motor.
Mr Pang Qinghua chairman of Pangda Automotive has signed an agreement with SsangYong Motor at the latter factory in Pyongtaek, South Korea. Pangda Automotive will become Ssangyong Motor official dealer in 21 provinces in China. It will officially launch auto sales for Ssangyong Motor in the Chinese market in August this year.
Recently, Pangda Automotive signed an agreement with Spyker a Dutch car manufacturer to invest in ailing automobile maker Saab. Pangda Automotive is also the official dealer for Zhongyi Subaru. Market speculated that Pangda Automotive was testing the waters before entering the world of vehicle manufacturing. However, Pangda Automotive has denied the report and saying that it will still be a dealer networking company.
In 2009, Pangda Automotive profit generated from the passenger car business was CNY 900 million in which Subaru contributed CNY 700 million. Pangda Automotive plans to set up 50 4S stores by the end of this year and the figure will reach 100 in 2012. By the end of 2013, the number of 4S stores is expected to hit 150.