Chinese car giants Geely and Changan form alliance


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Geely and fellow Chinese car maker Changan have committed to a partnership that will see them develop new drivetrains, platforms, and technology.

Changan Automobile and Geely Holdings have signed a strategic co-operation framework agreement aimed at promoting closer working ties between each other and their various brands.

The agreement between the two Chinese car makers – which centres on the areas of new energy, intelligence, overseas market expansion and mobility – has been conceived to improve the core competitiveness of each company, according to a media statement jointly issued by Changan and Geely on Wednesday.

In April 2023, Changan ranked third among China’s car makers by global sales volume and Geely was fifth.

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In the statement, Changan and Geely said they will co-coperate on what they describe as “power platforms” and “power technology” – terms that indicate the possible sharing of EV platforms and drivetrains in future models.

Additionally, they said they intend to explore co-operation opportunities in the fields of battery cells, electronic chips, vehicle operating systems, high-precision mapping, autonomous driving functionality, charging and battery swap technologies, electric vehicle safety and what they called industrial layouts.

At a signing ceremony in China, Changan and Geely also said they would seek a closer working relationship in overseas development as well as industrial internet, blockchain, and carbon trading.

Zhu Huarong, chairman of Changan Automobile, said: “This strategic cooperation is a model of a strong alliance. Taking this as a new starting point, in the future, the two parties will give full play to their respective strengths.”

Li Shufu, chairman of Geely Holdings, said: “Geely and Changan will co-operate closely, increase investment and complement each other’s strengths. We will work together to strengthen our core competitiveness.”

Chongqing-based Changan, China’s oldest car maker, is the parent company to the Oshan, Kaicene, Shenlan and Avatr brands. It also operates joint ventures with Ford and Mazda.

Hangzhou-based Geely Holding is the parent company to Volvo, Lotus, Proton, Polestar, Zeekr, Radar, Geome and Geometry, among other brands.

Confirmation of the agreement between Changan and Geely comes after a recent spat between the two companies.

In March, Changan’s lawyers issued a letter to the media accusing Geely of violating its intellectual property rights in the design of its new Galaxy line of electric saloons and SUVs, saying it was considering legal options.

The letter was met with a statement from Geely accusing Changan of spreading misleading information and false accusations.

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