CHINA: NEVS inks synergy deal with Dongfeng

By Simon Warburton | 17 August 2015

National Electric Vehicle Sweden (NEVS) and Dongfeng (DFM) have signed a strategic cooperation agreement to achieve what they refer to as global industrial synergies.

NEVS started working with Dongfeng on complete vehicle development projects last month with both companies now saying they will expand their cooperation to further business areas such as global purchasing and the distribution network.

Dongfeng has formed several long-term partnerships with other international major car manufacturers including AB Volvo and as a 14% shareholder of PSA.

Dongfeng Motor also has several JVs in China including Peugeot, Citroën, Renault, Nissan, Infinity, Honda and Kia and had an annual output of more than 3.83m units in 2014.

According to the agreement, Dongfeng will support NEVS on the construction of what is described as new energy vehicle production, as well as R&D in Tianjin and the formation of NEVS' sales and service with support from the Chinese company's dealer network.

NEVS will support Dongfeng with their own brands to meet regulations and technical specifications of overseas markets, as well as assist DFM to develop business in Europe and North America.

"Dongfeng is one of the leading vehicle company groups in the world," said NEVS president, Mattias Bergman. "Through this cooperation, NEVS will be able to create industrial synergies, share development costs, expand supplier bases and increase overall competitiveness for our own future products.

"This cooperation is one of the steps for NEVS to become a front-runner in the automotive industry, with focus on electric vehicles."