Two of China's state-owned automakers are close to signing a groundbreaking strategic alliance deal.
Chery Automobile Co., China's largest vehicle exporter, and Guangzhou Automobile Group Co. have announced they will sign a strategic partnership deal in November. While partnerships between foreign and domestic carmakers are commonplace, the deal will be the first time two state-owned Chinese automakers have signed such an agreement.
Both companies are keeping tight-lipped about the partnership, although it is reported to have been scheduled for signature at the beginning of November. As Chinese car makers face tougher competition from both domestic and foreign brands, the partnership may help both companies strengthen their position in the market.
Chery enjoyed a 22% increase in exports to 149,490 vehicles during the first three quarters, although it did not release sales results for the same period. Nonetheless, LMC Automotive has reported the company's vehicle sales fell 13% during the first nine months of the year to 403,111 units.
Meanwhile, Guangzhou Auto, which has joint ventures with Toyota Motor Corp., Honda Motor Corp. and Fiat S.p.A., saw sales of its own Trumpchi brand passenger cars increase 63% year-on-year to 17,769 units during the same period.