Shanghai (ZXZC)- Guangxi Automobile Group Co., Ltd. (Guangxi Automobile), whose former name is Liuzhou Wuling Automobile Industry Co., Ltd. (Liuzhou Wuling), and Fulin Industrial Group Co., Ltd. (Fulin Group), parent company of Yema Auto, signed a letter of intent on May 9, saying both parties will conduct strategic cooperation based on Yema Auto platform. 

Guangxi Automobile is preparing to acquire Yema Auto and aims to hold its whole share within five years, according to an insider from the State-owned Assets Supervision and Administration Commission of the State Council. 

It is said that Fulin Group and Guangxi Automobile will improve capabilities of researching & developing, manufacturing, marketing and servicing of traditional fuel-powered vehicles, new-energy vehicles (NEV) and parts, based on the JV cooperation, as well as their existing resources and advantages. At the same time, the cooperation aims to develop Yema Auto into a China-leading automaker with a certain manufacturing scale, sustainable development and stable operation.

Yema is still focusing on channel and brand building. In traditional channel sector, Yema Auto has a dealership number of more than 260. In terms of internet channel sector, Yema sticks to the "multi-platform and transformation-oriented" strategy. The letter of cooperation intent with Wuling will enable Yema Auto to capitalize on the off-line dealership channel of Guangxi Automobile's thousands of dealers to build a new sales channel mode, which will help products to quickly cover all-tier cities across China.