Shanghai (ZXZC)- Two Chinese state-owned auto giants SAIC Motor and GAC Group inked a framework agreement on December 23 to carry out a widespread strategic cooperation in a number of realms, both companies announced via their WeChat accounts.

The significant collaboration will involve such areas as technical R&D, resource synergy, investment, market expansion, business model innovation and global business operation, said GAC Group. This is the first-time tie-up formed between the two high-end manufacturing titans in the Guangdong-Hong Kong-Macao Greater Bay Area and the Yangtze River Delta Economic Zone.

(Photo source: GAC Group's WeChat account)

Propelled by a new round of technical and industrial revolution, the auto industry is undergoing a vital transformation to electrification, intelligence & connectivity, globalization, sharing and digitalization, which have deeply affected the product R&D, manufacturing, business models, industrial ecosystem and the overall development landscape. Thus, two parties aspire to seize the strategic chances from the industrial revolution and explore cooperation in multiple fields, said the Guangzhou-based automaker.

To be specific, SAIC Motor and GAC Group will jointly invest in and develop strategic core technologies and platforms related to NEV, auto intelligence & connectivity as well as lightweight. By sharing industrial chain resources, they are going to push ahead with cooperation in production, logistics, auto finance, insurance, aftermarket services as well as industrial investment.

In addition, the partnership will witness their joint efforts over the R&D of new business models like car-sharing, mobility service and separating consumption of vehicles and batteries.

Moreover, global market is the domain both parties are striving for. Under the agreement, SAIC and GAC will team up on seeking resources of sales channels and manufacturing, and searching business partners in overseas markets.

Both SAIC Motor and GAC Group are regulars on the Fortune Global 500 list, one of the most authoritative ranking presenting the business performance of companies worldwide.  As for the list of 2019, SAIC Motor was still the most lucrative OEM in China despite a slight drop in ranking, the 6th year in a row entering the top 100 list. Meanwhile, GAC Group moved up 13 places to the 189th.