SAIC and GAC signed a framework agreement for strategic partnership
Two major state-owned automakers, SAIC Motor Corp. and GAC Automobile Group Co., signed a deal to cooperate on the development and production of electrified and intelligent vehicles, auto-related services and exports.
The agreement will allow SAIC and GAC to better seize opportunities arising from the transformation of the auto industry, the two companies said in statements.
Under a framework signed in Shanghai on Dec. 23, SAIC and GAC plan to collaborate on development of key technologies and platforms for electrified and intelligent vehicles. The two companies expect to coordinate vehicle production and cooperate in vehicle shipment, auto financing, insurance and the aftermarket.
They will also seek opportunities to collaborate in new mobility services such as car sharing and ride-hailing, SAIC and GAC said.
In addition, they plan to jointly explore ways to share overseas distribution networks, business partners and production facilities. The two state-owned automakers must still hammer out specific plans and details on how to implement the sweeping partnership.
SAIC and GAC are majority-owned by the Shanghai municipal government and the government of south China’s Guangdong province, respectively.
The two companies each build and market passenger vehicles under proprietary brands while running joint ventures with global automakers – SAIC operates light vehicle partnerships with Volkswagen Group and General Motors while GAC operates car joint ventures with Toyota Motor Corp., Honda Motor Co., Mitsubishi Motors and Fiat Chrysler Automobiles.
Outside China, SAIC produces vehicles in Thailand and India under the MG brand. It also ships MG cars from China to Western European, including the United Kingdom, the Netherlands and Norway.
GAC exports vehicles to Russia and other emerging markets in the Middle East, Africa and South America. It does not build vehicles overseas.
