China's FAW Group, Dongfeng Motor and Chongqing Changan Automobile at the end of last week signed a broad based collaboration agreement aimed at improving efficiency, sharing costs and targeting future growth.
The three state owned automakers agreed to collaborate in the development of new technologies, explore new business models, improve efficiency and expand in global markets.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
They agreed to jointly fund a new technology centre focused on the development of new energy technologies, new smart and connected car systems and light weighting technology.
The automakers are also studying opportunities to increase economies of scale through collaboration in areas such as conventional powertrain development and production, component production and purchasing, supply chain and logistics and even joint vehicle production.
To help expand overseas, they will study opportunities for jointly funded production capacity and sharing dealer network development costs.
The government sees the need for domestic vehicle manufacturers to strengthen their core businesses, improve economies of scale and R&D and improve overall product and marketing, with a view to China becoming a global automotive powerhouse within 10 years.
