National Electric Vehicle Sweden AB (NEVS) and Dongfeng Motor Corporation enter strategic cooperation, focused on new energy vehicles
National Electric Vehicle Sweden AB (NEVS)—the rebirthed Saab—and Dongfeng Motor Corporation (Dongfeng) have signed a strategic cooperation agreement to achieve global industrial synergies.
According to the agreement, Dongfeng will support NEVS on the construction of new energy 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 new energy vehicle mass production.
NEVS will support Dongfeng on their own brands to meet regulations and technical specifications of overseas markets, and assist DFM to develop important markets in Europe and North America.
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.—Mattias Bergman, President, NEVS
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.
NEVS said that a long-term and stable alliance with Dongfeng is of great significance to achieve its own business opportunity.