Sept 29 (Reuters) – FAW Group, one of China’s centrally administered state-owned automakers, said it would expand cooperation with Guangzhou Automobile Industry Group to improve operational quality and efficiency, as consolidation gathers pace in the world’s largest auto market.
Under a strategic cooperation framework agreement signed on Tuesday, FAW and GAC’s controlling shareholder Guangzhou Automobile Industry Group will seek a new model of strategic collaboration between central and local state-owned automakers, FAW said in a statement.
• The framework partnership follows GAC’s announcement on Monday that FAW is set to become its second-largest shareholder through GAC’s acquisition of a 50% stake in FAW Toyota.
• FAW and Guangzhou Automobile Industry Group should pursue joint technology development and resource sharing to boost competitiveness and supply-chain resilience, the China Association of Automobile Manufacturers said on Tuesday.
• Cross-regional integration still faces hurdles including capacity quota transfers, tax-sharing arrangements and lengthy approvals, CAAM said, calling for policy support to facilitate industry consolidation.
• China has unveiled a roadmap through 2030 to strengthen its smart electric vehicle industry, with plans to curb overinvestment, encourage industry consolidation and eliminate inefficient capacity.
(Reporting by Qiaoyi Li and Liz Lee; Editing by Jamie Freed)
Comments