From simply introducing foreign capital and technology to replicating the resource sharing model of overseas auto giants, Chinese auto companies are experimenting with more modes of cooperation and development .
On November 6, Guangzhou Automobile Group and Chery signed a strategic alliance cooperation agreement in Beijing, announcing the establishment of the first cross-regional automotive strategic alliance in China. According to the agreement between the two parties, the two parties will cooperate in vehicle development, powertrain, key components, R&D resources, energy-saving and new energy vehicles, international business, and manufacturing.
Industry insiders believe that the establishment of the GAC Chery Alliance has broken the old tradition of the domestic auto industry fighting each other. "As early as two years ago, it was early signs that this year's official cooperation has brought significant benefits to both groups. The reasons behind this are also actively promoted by the government. This year's slowdown in the Chinese auto market is inseparable."
Cooperation involves seven areas
Regarding this cooperation, Chery and Guangzhou Automobile Group have been relatively low-key. According to rumors, GAC will use Chery's A-Class platform to develop GAC's A-Class products to enrich existing models.
In an interview with a reporter from the "Daily Economic News", GAC Secretary Lu Hao said that the cooperation is still being discussed. "We will publish an announcement regarding details of cooperation."
Chery’s senior management is also very cautious about this issue. “Cooperation is mainly in terms of technology and does not involve capital. Specific details will be released later.â€
After signing the contract on November 6, the contents of the strategic cooperation between Guangzhou Automobile Group and Chery Automobile were officially announced, mainly involving seven areas: vehicle development, powertrain, key components, R&D resources, energy-saving and new energy vehicles, international business, and manufacturing. .
For this cooperation, Zhang Fangyou, chairman of Guangzhou Automobile Group, and Yin Tongyue, chairman of Chery Automobile, both stated that the establishment of a strategic partnership between the two parties will help effectively integrate resource advantages and enhance the company’s core competitiveness. At the same time, it will also promote the core of the Chinese automobile industry. The construction of competitiveness will contribute to the development of the entire automotive industry.
However, details of the cooperation of various businesses were not disclosed in detail at this conference. Wu Song, General Manager of Guangzhou Automobile Passenger Vehicle explained that “the details of future cooperation will gradually emerge. The cooperation between the two sides is based on the principle of 'what is missing and what is to be cooperated'.â€
According to industry insiders, "it is clear that in the independent R&D field, GAC will use Chery's related technologies and platforms for further development."
Both sides complement each other
"Complementary advantages" contributed to the cooperation between GAC and Chery. Chery has been deeply practising its own brand for many years. According to statistics, Chery's annual R&D expenditures account for 10% to 15% of sales revenue. The country's R&D personnel have more than 6,000 employees, and the engine's R&D personnel alone has reached 800 or more.
Yin Tongyue said: “Currently, Chery Automobile has reached the international advanced level in vehicle engines, gearboxes and key components, and has been recognized by many international partners.â€
Earlier this year, due to Chery’s strategic adjustment, there were rumors that Chery's new car project was reduced from more than 140 to more than 30, and the adjustment was mainly to adapt to changes in the market. From another aspect, it can be seen that Chery has appeared the phenomenon of “relative excess†in the development of new vehicles. This has also become a prerequisite for cooperation with GAC and sharing technology platforms.
At the same time, Chery is also at the forefront of many domestic independent brands. "For many years, it has won the title of China's own brand export champion." Yin Tongyue is proud of this.
This is exactly what GAC Group needs. Guangzhou Automobile's own brand started late. Take Guangzhou Automobile's most respected Guangqi Chuanyu as an example. The brand introduced the Chuanqi and Chuanqi GS5 models through the introduction of the Alfa Romeo vehicle platform and seven series of engines. Although the sales volume of the Chuanqi GS5 is continuously rising, it has exceeded 4,000 units in October, but there is still a gap between the annual sales target of 65,000 units in the future.
In addition, Wu Song also told reporters that in the future, Chuan Chuan wants to go abroad and there is less experience in this area. Cooperation with Chery will gain more export experience.
Guangzhou Automobile is also a rare cornucopia for Chery. Through cooperation with several international automobile groups, especially Japanese companies, GAC Group has extensive experience in product promotion, marketing, production lean management, automotive aftermarket business, and services. These experiences have been used in the GAC passenger car business. , In the production line layout, production management, etc., borrowed a lot of Honda and Toyota's experience. And this is precisely what Chery needs.
Chery’s cooperation with Guangzhou Automobile will enable it to absorb many advantages of GAC management, production and brand management. Through cooperation in the fields of technology and R&D, GAC and Chery can also save a great deal of time and costs and jointly enhance the competitiveness of these two independent brands.
Market driven
The strategic cooperation projects between GAC and Chery had the intention of contact and cooperation as early as two years ago. According to an insider of Chery Automobile, Guangzhou Automobile and Chery had the intention of cooperation in 2010 under the auspices of Fiat, because the two parties involved in the negotiations did not go too far, and later it was over.
This cooperation can be "landed" so quickly this year, and it is not unrelated to the government's promotion. At the signing ceremony, Minister of Science and Technology Wan Gang, Deputy Minister of Ministry of Industry and Information Technology Su Bo and other leaders of the ministries, and leaders from Guangdong Province and Anhui Province attended the ceremony.
The industry believes that the strategic cooperation among enterprises and the establishment of technology alliances have always been the practice appealed by the Chinese government and people from all walks of life. In foreign countries, many auto groups have already formed strategic alliances. However, at home, China's own brands have been fighting alone, which not only wastes resources but also does not create complementary advantages.
"Before, the cooperation between Guangzhou Automobile and Chery has not been implemented for two years, mainly because of the lack of market promotion, only in the industry 'winter', companies will think of Baotuan warm." Industry sources commented.
The insiders of GAC Group also frankly stated: “In 2010, the domestic auto market was booming and its respective developments could have good performance. The auto market began to cool down in the second half of 2011, and the growth rate of the auto market slowed down again in 2012, which promoted the process of bilateral cooperation negotiations. â€
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