Dongfeng Motor Corporation and FAW Group will build a joint innovation center that will see them collaborate in five areas including fuel cell technology, smart connectivity and testing facilities.
This will bring China’s two oldest state-owned automakers together as the companies signed an agreement in February earlier this year.
The pair plans to invest CNY10 billion (USD1.45 billion) in an NEV firm with other investors, however the cooperation between the two companies is only on a technical level and there are no plans of a merger between the two companies as rumored.
The companies had swapped top executives in 2015 when former FAW president Zhu Yanfeng replaced Dongfeng’s chairman Xu Ping, who was in turn named the chairman of FAW Group.
In China Dongfeng have joint ventures with Renault-Nissan, Honda and PSA Peugeot Citroën. On the other hand FAW have partnerships with the world’s three biggest carmakers by sales Toyota, Volkswagen and General Motors GM.