Beijing (ZXZC)- On June 6, GAC Group and Changan Automobile signed a strategic cooperation framework agreement in Chongqing, marking a pioneering collaboration between a central state-owned enterprise (SOE) and a local SOE in China’s automotive industry.

Photo credit: GAC Group

According to official statements, the two companies aim to leverage their respective strengths and pursue mutual benefits. Their strategic cooperation will cover areas such as shared platforms and technologies, industrial chain ecosystems, international business, and industrial funds. The goal is to collectively enhance the core competitiveness of China’s automotive industry.

GAC Group Chairman Zeng Qinghong emphasized that the Chinese automotive industry is undergoing unprecedented changes. Embracing the strategic direction and historical mission of strengthening and expanding domestic brands, GAC and Changan will capitalize on their industrial resources to establish a strategic partnership. This collaboration is seen as a proactive choice to boost the overall competitiveness and sustainable development of both groups, as well as a necessary step towards facilitating high-quality development in the automotive sector through the synergy of central and local SOEs.

Changan Automobile Chairman Zhu Huarong highlighted that both Changan and GAC are key representatives of China’s automotive industry and have maintained a strong and friendly relationship. This strategic cooperation aims to truly achieve complementary advantages, resource sharing, and strategic alignment. By joining forces, the two companies plan to tackle industry challenges, create new productive capabilities, and provide consumers with superior products and services.