Dongfeng, FAW plan joint innovation center
Dongfeng Motor Corp. and China FAW Group Cor. said they will build a joint innovation center, a move that brings China's two oldest automakers together after they swapped top executives in 2015.
The companies signed an agreement to develop fuel cells, in-car connectivity and testing facilities. Financial terms were undisclosed.
In 2015, former FAW President Zhu Yanfeng replaced Dongfeng Chairman Xu Ping, who was in turn named chairman of FAW Group.
The move sparked wide speculation that the companies could merge, sending up shares of listed subsidiaries FAW Car Co. and Tianjin FAW Xiali Automobile Co.
The companies have struggled to establish independent brands that can compete with foreign manufacturers, but both have highly profitable joint ventures with global automakers.
FAW has joint ventures with Toyota Motor Corp. and Volkswagen AG, while Dongfeng has partnerships with Honda Motor Co. and Nissan Motor Co.
In 2015, former FAW President Zhu Yanfeng replaced Dongfeng Chairman Xu Ping, who was in turn named chairman of FAW Group.
The move sparked wide speculation that the companies could merge, sending up shares of listed subsidiaries FAW Car Co. and Tianjin FAW Xiali Automobile Co.
The companies have struggled to establish independent brands that can compete with foreign manufacturers, but both have highly profitable joint ventures with global automakers.
FAW has joint ventures with Toyota Motor Corp. and Volkswagen AG, while Dongfeng has partnerships with Honda Motor Co. and Nissan Motor Co.
