Two domestic auto firms announced a tie-up in vehicle development and resource sharing Tuesday, the first alliance of this type among Chinese automakers, and some analysts said more similar partnerships may follow.
Chery Automobile Co, the largest self-owned auto firm in China, signed a cooperation deal with Guangzhou Automobile Group Co (GAC) Tuesday in Beijing, saying they would cooperate over key auto parts and in the energy-saving field.
"The cooperation will help us sharpen our competitive edge and can assist GAC in research and development," Chery spokesman Huang Huaqiong told the Global Times Tuesday.
The move will enable GAC to use Chery's small-scale vehicle platform and supply chain, which can assist its medium- and high-end market orientation, Wu Song, vice general manager of GAC, was quoted as saying by the Beijing-based newspaper Economic Observer.
"The tie-up is a meaningful step for Chinese auto producers," Zeng Zhiling, an auto industry analyst with Shanghai-based research firm JD power, told the Global Times Tuesday.
Some recognized global brands have also announced similar moves, Zeng noted. PSA Peugeot Citroen Group, for instance, confirmed in October that it will cooperate with General Motors on four vehicle platform development projects.
Sharing resources like vehicle platforms and supply chains can help automakers to cut costs and risks and shorten the time it takes to develop and market a new model. This is what Chery and GAC now need, Zeng said.
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