What moved the needle in the global auto industry this week?
Spain Set to Approve SAIC Motor Plant Project
Spain is poised to approve Chinese automaker SAIC Motor’s plan to build a car plant in the Galicia region, a spokesperson for the country's Defense Ministry told foreign media. The move comes despite earlier reports flagging potential security risks due to the site's proximity to a Spanish naval base.
The facility will mark SAIC’s first European factory for its MG brand—a critical step as the company accelerates its expansion across the continent and pushes forward with localization. In June, SAIC outlined plans for an initial investment of roughly 200 million euros ($217 million), with production slated to begin in 2028 and maximum annual capacity reaching 120,000 units.
Image Source: SAIC MG
SAIC joins a growing list of Chinese automakers and battery makers striking deals to build plants in Spain in recent years. For regions that have struggled following factory closures, this influx of Chinese capital offers fresh opportunities for industrial development.
A spokesperson for the regional government of Galicia revealed that Defense Minister Margarita Robles reached out to the region's leadership on August 11, confirming her support for the initiative as it heads to the cabinet for final approval.
Following months of negotiations between the Defense Ministry and SAIC, the Galician spokesperson noted that authorities "have no concerns regarding security issues."
A Defense Ministry spokesperson confirmed the stance to Reuters, adding that the project still requires clearance from the Strategic Investments Committee. While the committee could attach conditions related to security, the spokesperson did not specify whether the ministry itself would impose specific requirements.
Gasgoo Take: Clearing the security review is just the first hurdle. Once production begins, the real question for MG is whether "Made in Spain" can maintain its cost-performance advantage after bypassing tariffs.
Changan Automobile Deepens Ties with Huawei, Expanding Cooperation into AI Models and Computing Power
On August 11, China Changan Automobile Group and Huawei Technologies signed a strategic cooperation framework agreement in Shenzhen.
Under the agreement, the two companies will deepen collaboration across AI products and scenarios, general and automotive-specific large models, digital infrastructure, computing power, and software-hardware integration. The partnership will also extend into digital energy, international expansion, and the development of digital talent.
Image Source: China Changan Automobile Group
The scope of this latest agreement signals a shift in the Changan-Huawei relationship: it is moving beyond specific vehicle models and smart mobility solutions to touch on more foundational AI and digital capabilities. The focus on automotive-specific large models, computing power, and software-hardware integration suggests the partnership is no longer confined to consumer-facing features like smart cockpits and driver-assistance systems. Instead, it is poised to penetrate deeper into R&D, manufacturing, and enterprise digitalization.
This is not the first deep tie between the two. Back in November 2023, Changan and Huawei signed an investment cooperation memorandum, gradually bringing their partnership to the capital level. By August 2024, Avatr Technology had signed an agreement to invest in Huawei's Yinwang unit, completing the acquisition of a 10% stake in 2025. Avatr has long served as a key vessel for their automotive collaboration, extensively adopting Huawei’s smart driving and cockpit solutions.
Changan’s own corporate identity has also evolved. In July 2025, China Changan Automobile Group was officially established under the auspices of the State-owned Assets Supervision and Administration Commission (SASAC). This reshaped China’s state-owned auto sector into a triad comprising FAW Group, Dongfeng Motor, and Changan. For this newly formed central enterprise, accelerating intelligent transformation and bolstering its proprietary technology ecosystem are pressing challenges it cannot ignore.
The significance of this latest signing, therefore, lies less in the fact that "Changan is partnering with Huawei again" and more in the expanding boundaries of their collaboration. As industry competition pivots from electrification to intelligence and AI, Huawei’s prowess in computing power, large models, and ICT infrastructure holds undeniable appeal for traditional automakers. Yet, as these alliances deepen, automakers face a long-term dilemma: how to leverage external technical capabilities while retaining control over their core proprietary technology.
Gasgoo Take: Moving from "using Huawei's features" to "using Huawei's foundation" allows Changan to close the intelligence gap—but it also forces the company to define where the boundaries of its technological autonomy lie.
Porsche Teams Up with XPENG to Navigate European Emissions Compliance
According to foreign media reports, Porsche plans to form an emissions pool with Chinese automaker XPENG for the 2026-2027 period, based on a filing the German automaker submitted to the European Commission earlier this month.
This shift marks Porsche's exit from the Volkswagen Group's existing emissions pool in favor of a partnership with XPENG, which currently sells only battery-electric vehicles in Europe.
Image Source: Porsche
The move could also help the Volkswagen Group lower its overall carbon footprint. The group's average fleet CO2 emissions stood at 100 grams per kilometer in 2025—above the EU's target of 93.6 grams. To avoid fines, Volkswagen needs to further reduce emissions in 2026 and 2027.
Volkswagen Group CFO Arno Antlitz warned in May that missing the 2025-2027 targets could result in cumulative fines of 1.5 billion euros, with annual penalties estimated at 400 million to 500 million euros.
Porsche has recently pivoted its focus back toward internal combustion engines just as its EV sales have slipped, making it a drag on the group's overall reduction efforts. By the end of June, sales of the Porsche Taycan had fallen roughly 20% year-on-year, while the all-electric Macan dropped about 30% in Europe. Only the all-electric Cayenne saw growth, though volumes remain modest.
Data from Dataforce shows Porsche's average fleet emissions climbed to 130.2 grams per kilometer in the first half of the year—a 9.8% increase from 118.5 grams in the same period of 2025.
Meanwhile, XPENG is growing rapidly in Europe. Sales there jumped 126% year-on-year to roughly 19,000 units by June.
Since the EU significantly tightened fleet emission standards in 2020, many automakers have mitigated compliance risks by forming pools with pure EV manufacturers or brands with high electric penetration. Typically, the cost of paying to join such a pool is lower than the potential fines.
The Porsche-XPENG pool will be managed by Porsche and cover both 2026 and 2027. It will be an "open" pool, meaning other brands or automakers could potentially join.
Other open pools include one managed by Tesla with members Ford, Honda, Mazda, and Suzuki, and another managed by Mercedes-Benz that includes Volvo, Polestar, and Smart.
This is not the first collaboration between Volkswagen Group and XPENG. In 2023, Volkswagen acquired a 5% stake in XPENG for roughly $700 million to tap into its software architecture and AI capabilities. Since then, the two have jointly developed models for the Chinese market. Reports also suggest they are in talks for XPENG to take over a Volkswagen plant in Europe.
Gasgoo Take: Porsche leverages XPENG’s electric credits to hedge compliance risks, while XPENG secures a more stable revenue stream in Europe beyond vehicle sales. A mutually beneficial arrangement.
GM to Spend Up to $4.5 Billion to Secure Critical Parts Supply
General Motors has devised a plan to raise up to $4.5 billion to secure critical automotive components, aiming to shield itself from supply chain shocks triggered by extreme weather, natural disasters, and cyberattacks.
Image Source: General Motors
In an August 11 securities filing, GM revealed a partnership with Procura Auto Parts. Under the deal, Procura will purchase component inventory from key suppliers and front the cash. GM will pay interest and fees upfront to Procura, settling the actual cost of parts only when they are needed. Suppliers will remain responsible for warehousing the components.
GM did not specify which component categories are covered by this plan. The automaker has previously faced production cuts due to chip shortages and has already moved to secure stable supplies of semiconductors and rare earth materials.
The filing indicates Procura will secure financing from banks including JPMorgan and Banco Santander to fund the purchases. Procura will charge GM an annual interest rate of 1.55% on top of the secured overnight financing rate (currently about 3.6%). Additionally, GM will pay an annual fee of 0.25% on the daily unused balance of the credit line.
According to its website, Procura has provided inventory management services since 2015, with operations in London, Frankfurt, and New York. The company specializes in the procurement, sales, and management of commodities and industrial materials.
Recent supply chain disruptions have forced production halts at multiple automakers, and GM’s initiative is a direct response to these risks. The pandemic and the subsequent chip shortage exposed a critical vulnerability: when automakers rely on just-in-time delivery, a single missing part can easily shutter an entire assembly line at immense cost.
Gasgoo Take: After just-in-time manufacturing showed its fragility during the chip crisis, GM is choosing to pay interest for a buffer. That cost is essentially putting a price tag on the risk of supply chain failure.
Bosch Secures Major Project Awards
On August 13, Bosch announced a significant breakthrough in its smart driving business: its fourth-generation multi-purpose camera (MPC4) has secured major project awards, accelerating its path to mass deployment.
Image Source: Bosch
To date, MPC4 orders cover more than 40 vehicle models and over 200 projects globally. Total orders have reached the multi-million-unit mark, marking a steady increase in both market reach and industrial scale.
On the production front, the MPC4 has fully entered the mass production phase. The first awarded project is slated to begin mass production in the third quarter of 2026. Subsequently, projects for various Chinese and overseas automakers will launch sequentially, driving steady global volume delivery.
Geographically, the MPC4’s footprint is expanding rapidly. Awards now cover major markets including China, Europe, Australia-New Zealand, Latin America, the Middle East, and the Asia-Pacific region. Bosch plans to leverage its global engineering network and regulatory expertise to quickly adapt to regional market access rules, supporting the global rollout of the MPC4 and automakers' international vehicle strategies.
Bosch noted that with over 200 projects underway, capacity reserves in the millions, and synchronized progress across multiple regions, the MPC4’s mass production is successfully translating technical advantages into global commercial success. Looking ahead, Bosch aims to drive the broader adoption of intelligent driver-assistance technologies across more vehicle models and markets.
Gasgoo Take: With Bosch cameras in over 40 models, it is clear that bringing smart driving to mass-market vehicles is about more than just algorithm parameters—it comes down to who can drive down hardware costs and successfully navigate global certification and delivery.
Autoliv Breaks Ground on Wuhu Airbag Factory, Production Set for 2027
On August 10, Autoliv Wuhu Safety Systems held a groundbreaking ceremony in Jiujiang District, Wuhu City, Anhui Province. The new facility will focus on automotive airbag products, featuring modern production workshops and automated assembly lines, with operations scheduled to begin in 2027.
Image Source: Autoliv
This marks another step in Autoliv’s manufacturing expansion in China this year. In January, the second phase of its Jiading plant officially began operations. With a total investment of 350 million yuan, that site serves as Autoliv’s flagship airbag factory in China. The launch of the Wuhu project further consolidates the company's airbag production capacity in East China.
The choice of Wuhu is hardly surprising. As a key automotive hub and the stronghold of Chery Automobile, Wuhu boasts a relatively complete industrial cluster for both vehicles and components. For Autoliv, establishing a production base here helps shorten the supply chain distance to regional OEM customers, thereby improving delivery speed and responsiveness.
This expansion also reflects a shift in Autoliv’s customer structure in China. Its 2025 annual report shows sales to domestic Chinese automakers jumped 23% year-on-year, with local brands now contributing 44% of the company’s revenue in the region—a key growth driver.
Gasgoo Take: Building an airbag factory in Chery’s backyard is effectively a Tier 1 supplier voting with its feet. With local brands accounting for 44% of sales, following core customers with capacity is a strategy more tangible than any corporate mission statement.
