FAW and Leapmotor are also focused on exploring capital cooperation options
China’s oldest state owned carmaker, FAW, has begun talks with Stellantis’ Chinese electric vehicle (EV) brand, Leapmotor with two big goals in mind. The first is the development of new energy vehicle (NEV) technology and the second is to explore capital cooperation opportunities. With the infamous EV price wars showing no sign of slowing down in China, this partnership will be vital for both brands to survive.
The two companies officiated their collaboration by signing a Memorandum of Understanding (MoU) at FAW Group’s headquarters in Changchun City. This agreement marks the beginning of a long-term partnership but with so many other brands also competing for market share, will this be enough for the two brands?
Moreover, the collaboration between FAW and Leapmotor will see both brands sharing their latest EV technologies and combining their resources. Together, the two brands plan to develop a new generation of smart EVs and associated components, pushing the boundaries of innovation in the fast-evolving smart NEV segment.
FAW, one of China’s largest automotive companies, achieved global sales of nearly 3.2 million vehicles last year. This includes vehicles sold through joint ventures with global giants Volkswagen and Toyota, as well as 819,000 units sold under FAW’s own brands.
Meanwhile, Leapmotor, a rapidly growing EV brand, is already garnering strong attention in Malaysia and saw its global sales soar by more than 100 percent in the past year, reaching 293,724 units. The company also turned a profit in the fourth quarter of the year, signaling its successful growth trajectory in the competitive EV market.
On top of that, the partnership between FAW and Leapmotor reflects the importance of collaboration in the ever competitive EV industry. By pooling their resources and expertise, both companies stand a far better chance of surviving the brutal price wars going on in China and globally where some markets in the West seem to be sick of EVs and are turning back to internal combustion engines (ICE) instead.
With this partnership, FAW Group and Leapmotor are in a good place to not only survive, but also thrive and perhaps even put an end to these dreaded EV price wars once and for all and reshape the entire automotive industry as a whole. This collaboration is a crucial step toward securing their long-term success in an increasingly competitive global automotive landscape.
We got all this from Yahoo Finance and their full article is linked here. Thank you Yahoo Finance for the information and images.
