We propose a novel way to break grand unified gauge symmetries via the Hosotani mechanism in models that can accommodate chiral fermions. Adjoint scalar fields are realized through the so-called diagonal embedding method which is often used in the heterotic string theory. We calculate the one-loop effective potential of the adjoint scalar field in a five dimensional model compactified on an S^1/Z_2 orbifold, as an illustration. It turns out that the potential is basically the same as the one in an S^1 model, and thus the results in literatures, in addition to the chiral fermions, can be realized easily.

5 pages, 1 figure, minor improvements (especially in Eq.(4)), references added and typos corrected