ONLINE Vehicle Sales Company in China
Guangzhou Automobile Co. and its insurance subsidiary established a joint venture with Chinese Internet company LeShi Holdings to sell cars, parts and services, auto finance and insurance online.
The 1.4 billion ($212 million) new company, Dasheng Technology Co., is incorporated in the south China city of Guangzhou where GAC is headquartered.
It is registered as a 45-40-15 partnership between GAC, LeShi and Urtrust Insurance Co., according to GAC.
Dasheng will provide online sales and other services for all automakers operating in China — not just GAC and its joint ventures.
State-owned GAC produces Trumpchi-brand passenger vehicles. The company also operates joint ventures with Toyota, Honda, Mitsubishi and Fiat Chrysler.
LeShi Holdings — which is also known as LeEco — started out as an online video streaming site.
The company now makes TV sets, mobile phones, telematics products and movies. It also plans to produce electric vehicles in the United States and China with the help of Faraday Future, a California-based company backed by LeEco founder Jia Yueting.