Chinese automakers National Electric Vehicle Sweden AB (Nevs) and Dongfeng Motor Corporation signed a strategic cooperation agreement on Monday to jointly develop electrified cars.
Since July 2015, Nevs has started working with Dongfeng on complete vehicle development projects to enhance Dongfeng’s technical strength and improve Nevs’ own development capability. Now both parties have agreed to expand their cooperation from technical development to further business areas such as global purchasing and distribution network.
According to the agreement, Dongfeng will support Nevs on the construction of electric vehicles production and R&D in Tianjin and the formation of Nevs’ sales and service with support from Dongfeng’s dealer network. Dongfeng will also support Nevs to achieve the electric vehicle mass production.
Nevs, which bought bankrupt carmaker Saab in 2012, will help Dongfeng sell its own brand cars through the Nevs dealer network in Europe and the United States, and also meet European legal and technical requirements.
Nevs announced in June that it broke ground on a factory with a potential capacity of 200,000 cars as well as a research and development center, with two Chinese partners pledging to invest 1.2 billion yuan ($187.68 million).
Dongfeng has formed several strategic long term partnerships with other international major car manufacturers including AB Volvo and as a 14 percent shareholder of PSA. Dongfeng Motor, with several JVs in China including Peugeot, Citroën, Renault, Nissan, Infinity, Honda and Kia, is one of the world’s largest automobile companies, with an annual output over 3.83 million units in 2014 and 1.83 million in the first half of 2015.
