Shanghai (ZXZC)- BAIC Group and Great Wall Motor inked a strategic cooperation agreement on August 7.

The two automakers are going to forge an in-depth partnership in various areas like sharing auto parts resources, while how the cooperation processes has still been under discussion, according to a source familiar with the event. Both auto companies have not made any comment yet.

In May, a source revealed that Xu Heyi, chairman of BAIC Group, visited Great Wall Motor's headquarters in Baoding, Heibei province and its assembly plant in Xushui District in the company of Wei Jianjun, who chairs Great Wall Motor. It is said that the aim of Xu's visit is to facilitate BAIC Group's purchase of engines and gearboxes from Great Wall Motor.

It is noteworthy that both Xu Heyi and Wei Jianjun who take the helm of two automakers have the same attitude on resource sharing. Xu Heyi said at the company's development strategy conference earlier this year that BAIC BJEV, the group's NEV subsidiary, will remain open to tie-ups and share R&D achievements with its partners, so as to promote industrial cooperation vertically and horizontally.

Last month, Great Wall Motor incorporated its auto part businesses into two wholly-owned subsidiaries in Jiangsu province. According to We Jianjun, the automaker aims to develop the newly-built subsidiaries into world-leading brands after integrating the auto parts businesses and have them public eventually.