GAC and Chery Form Alliance: Open and Happy Cooperation "Not a Small Account"

The most concerned domestic first car enterprise strategic alliance was finally unveiled in Beijing the day before yesterday. GAC Group and Chery Automobile formally signed a strategic alliance cooperation agreement. The two parties will carry out in-depth cooperation in various fields such as R&D of complete vehicles, core components and new energy, and system capacity building.

This has also become an “ice-breaking journey” for domestic car companies to cooperate with the technology alliance. Industry analysts also believe that under the background of increasingly fierce competition from domestic brands with domestic brands, GAC and Chery have created a new model of self-development through market-based alliances, which will accelerate the competitiveness of their own brands.

"Open and happy cooperation"

"Chery has firmly studied with GAC. It is not a small account. It does not hide its eyes and open up its cooperation." At the signing ceremony, Yin Tongyue, Chairman of Chery Automobile, described the newly-built cooperation relationship between the two parties.

According to an announcement released by Guangzhou Automobile Group yesterday, the two parties signed the "Strategic Alliance Cooperation Framework Agreement" and "Technology Cooperation and Research and Development Resources Sharing Cooperation Agreement" and "Powertrain Support and Resource Sharing Cooperation Agreement". The main contents of the "Strategic Alliance Cooperation Framework Agreement" include: "Co-planning, co-development, and communication in vehicle development, powertrain, parts and components, R&D resources, energy-saving and new energy vehicles, international operations, and manufacturing management. shared."

The main contents of the "Technology Cooperation and R&D Resources Sharing Cooperation Agreement" include: "To share and integrate R&D resources such as vehicle platform and key component technologies and experimental tests; to carry out technical exchanges and exchanges in energy-saving and new energy vehicles, and to help each other "Development of Powertrain Support and Resource Sharing Cooperation Agreement" mainly includes: "In cooperation with parts and components resources, including the engine and gearbox; to open up complementary resources; to share the results of platform components."

The announcement also showed that the cooperation agreement between the parties will be valid for three years.

There is a lot of complementary space on both sides

Among the contents of the cooperation between the two parties is the core content of the joint development of the vehicle, the sharing of powertrains, and the integration of key component industrial chains. The cooperation and sharing on core technical resources shows that the two sides are deeply "electric shocked."

As the largest-selling auto brand car company, Chery has owned independent research and development capabilities, independent intellectual property rights and core technologies for complete vehicles, engines and some key components. GAC, through its Alfa Romeo platform technology, has developed a medium-to-high-class vehicle and has developed a series of engine products that have reached international advanced level in production and manufacturing. Therefore, there is a lot of complementary space between the two parties. In particular, the sharing of engine technologies will reduce the investment in the research and development of power technologies.

GAC will launch its own brand passenger car export strategy from next year and is expected to leverage Chery’s overseas resources. GAC, which is proficient in manufacturing and operations, will also help boost Chery’s overall operating standards.

Since Chery has more research and development accumulation in the low-end sedan segment, the industry expects that the next-generation A-car series products that Guangzhou Automobile will launch may be introduced into the Chery platform, and through the integration of both supply chains, it will reduce the development and manufacturing costs.

Develop new models for independent cooperation

The most important significance of the cooperation between Guangzhou Automobile and Chery is therefore to open up new ideas for accelerating the development of self-owned brand cars and to respond to unprecedented fierce domestic market competition.

Zhang Fangyou, chairman of GAC Group, stated that at present, China’s auto industry has entered a steady growth phase, and China’s auto industry is undergoing profound adjustments and changes, coupled with the slowdown in macroeconomic growth and the relative development of transportation infrastructure. With the constraints of lags and other factors, major domestic automobile groups are facing the pressure of industrial restructuring and transformation and upgrading.

The domestic automobile industry has entered the stage of “micro-growth” since last year, and the market share of its own-brand passenger cars has been declining in the fierce competition. Chery, the boss of its own brand sales, faces a situation of declining domestic sales; the launch of high-end self-owned brand products soon The Guangzhou Automobile Group has also encountered tremendous pressure. Industry analysts believe that the full cooperation between the two parties will, in particular, help reduce the huge cost of R&D and accelerate the pace of new products and new technologies being put on the market.

Liu Tie-nan, deputy director of the National Development and Reform Commission, pointed out that large-scale enterprise groups have established various strategic alliances such as joint technological development and joint procurement, forming powerful complementary advantages and resource sharing, and enhancing overall competitiveness, and have become a strategic adjustment for the international automotive industry. the trend of. With the integration of the global economy and the internationalization of the domestic market, in the face of fierce market competition, the strengthening of strategic cooperation among domestic auto companies is an inevitable choice for companies and independent brand products to continue to grow.

"We hope that both sides will take advantage of the alliance, explore cooperation models and market-oriented mechanisms, and make contributions to the market players in order to become stronger," said Liu Tienan.

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