Shanghai (ZXZC)- On April 20, GAC Group inked a strategic cooperation framework agreement with Technology Financial Group (“TFG”), a Guangdong-based state-owned investment firm, to step up the collaboration on automotive industrial chain, according to a post on GAC Group's WeChat account.

GAC Group, Technology Financial Group sign agreement; photo credit: GAC Group

Under the agreement, both parties plan to join hands with relevant industrial capital firms, local government-backed funds, financial capital institutions, and social capital organizations to set up an automotive industrial fund by leveraging TFG's expertise and resources in the venture capital field and GAC Group's technical advantages and resources in the automotive industry. The joint fund will be used to provide financial support for the development of automotive industry.

Besides, the partnership will see the duo cooperate in the projects about the incubation of auto-related cutting-edge technologies, the commercialization of scientific and research findings, the industrial technology investment, and other businesses. The two companies will co-hold special investment and financing events at a proper moment.

Prior to the new agreement signing, GAC Group and TFG had carried out cooperation in some projects. The latest move  deepen interaction and collaboration between the two companies in automotive supply chain. They will cement the teamwork and resource sharing in the R&D and manufacture of auto parts, based on GAC Group's outstanding influence in Guangzhou's ICV & NEV industrial chain and the technical innovation strength of Guangdong Hongtu Technology (a subsidiary of TFG) in casting and automotive interior & exterior areas.

Moreover, GAC Group and TFG will also actively explore the cooperation in talents exchange, industrial researches, as well as business training.