Originally published on EV Obsession.
The new agreement is reportedly focused on “new energy vehicles” — which is to say, plug-in electric vehicles, primarily. The move is intended to help the two companies achieve synergies in some of their various operations.
The agreement will see NEVS receive support from Dongfeng on the development of vehicle production as well as research and development in Tianjin. It will also provide support for the creation of sales + service via aid from Dongfeng’s already established dealer network. Dongfeng will receive support from NEVS for the development of efforts to meet regulatory + technical requirements for markets that NEVS has experience in (North America, Europe, etc).
The president of NEVS, Mattias Bergman, commented: “Dongfeng is one of the leading vehicle company groups in the world. Through this cooperation, NEVS will be able to create industrial synergies, share the development costs, expand the supplier bases and increase the overall competitiveness for our own future products. This cooperation is one of the steps for NEVS to become a front-runner in the automotive industry, with focus on electric vehicles.”
Green Car Congress provides a bid more information:
In July 2015, NEVS began 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.
Dongfeng Motor Corporation (DFM) is the third biggest Chinese state-owned automobile manufacturer headquartered in Wuhan, Hubei Province. Dongfeng has formed several strategic long term partnerships with other international major car manufacturers including AB Volvo and as a 14% 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 of more than 3.83 million units in 2014 and 1.83 million in the first half of 2015. In 2012 DFM acquired 70% of T engineering, a Trollhättan based engineering company and a spin off from Saab Automobile Powertrain, as their first R&D center overseas.
According to reps from NEVS, a strong alliance with Dongfeng is integral to its ability to reach some of its business goals.