WUHAN – FAW Group, Dongfeng Motor Corp. and Chang’an Automobile signed a strategic cooperation framework agreement in Wuhan on December 1 to promote the development of China’s auto market and improve the overall strength of China’s automotive brands.
The move brings together China’s No. 2 (Dongfeng), 3 (FAW) and 4 (Chang’an) automakers in sales volume and forms a so-called “National Team” since FAW and Dongfeng are both centrally-administered state-owned companies, while Chang’an is a subsidiary of China South Industries Group, which is also centrally-administered state-owned enterprise.
According to the agreement, the three sides will carry out all-round cooperation in four areas including forward-looking generic technology innovation, automotive full value chain operation, overseas market expansion and new business models.
First, they will actively participate in the formation of a National Intelligent Connected Vehicle Innovation Center and establish the Forward-looking Generic Technology Innovation Center together. They also will jointly invest and develop the strategic core technology and platform to share technological achievements in the fields of new energy, intellectualization, connectivity and light weighting.
Second, they will focus on strengthening teamwork in traditional vehicle platforms and powertrains, and deepening cooperation in the field of logistics, production and manufacturing.
Third, they will positively explore deep cooperation of overseas terminal network resources, overseas business partners, overseas manufacturing resources and international logistics.
Fourth, they plan to strengthen research and cooperation in car-sharing, mobility services and new ecosystems, and jointly participate in the construction of intelligent transportation and smart cities.
The cooperation among the three automakers conforms to the big trend of economic globalization and market integration, and meets with the industrial policy of optimizing industrial layout and developing advanced manufacturing industry, which will accelerate the transformation and upgrading of China’s auto industry and help Chinese car brands to become stronger.
FAW, Dongfeng and Chang’an combined sold 8.36 million vehicles in China in the first 10 months of this year, which accounts for more than one-third of auto sales in China. Those sales include their namesake brands as well as joint ventures with Volkswagen, Toyota, Honda, Renault-Nissan, Mazda, Suzuki, Ford and PSA.