Chinese state-owned automaker FAW Group has signed a preliminary agreement with battery electric vehicle (BEV) startup Zhejiang Leapmotor Technology Company to collaborate in the development of a new generation of smart new energy vehicles (NEVs), according to local reports. The two companies face rising competition in their domestic market from a growing number of local automakers and brands.
The two companies signed a Memorandum of Understanding (MoU) on Strategic Cooperation at FAW Group’s headquarters in Changchun City, marking “the beginning of a partnership” that aims to leverage their respective strengths, integrate resources and strengthen their competitiveness in the smart NEV market.
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FAW Group and Leapmotor have agreed to share their latest EV technologies and pool R&D resources to jointly develop a new generation of smart EVs and related components. The two companies have also agreed to explore opportunities for “deeper capital collaboration” – with the aim of strengthening their industrial supply chains through “financial cooperation”.
FAW Group sold almost 3.2 million vehicles globally last year, including its foreign joint ventures with Volkswagen and Toyota and 819,000 units under its own brands. Leapmotor’s global sales more than doubled to 293,724 vehicles last year, with the company achieving profitability in the fourth quarter of the year.
