Suzuki, Changhe in talks for new strategic partnership

Shanghai October 25 (Gasgoo.com) Jiangxi Changhe Automobile, a Chinese automaker that China Changan Automobile Group acquired from Aviation Industry Corp of China (AVIC) last year, is getting prepared for a new strategic partnership with its Japanese partner Suzuki Motor, its General Manger Li Li said in an interview with Beijing Times recently.

Chongqing Changan Automobile, a subsidiary of China Changan Automobile Group, is also planning to strengthen its cooperation with Suzuki Motor, Li revealed, denying the report that Changhe Suzuki will be merged into Chongqing Changan Automobile.

Moreover, Li pointed out that restructuring over the past year and utilizing Changan's procurement platform have helped Changhe achieve cost reductions of 180 million yuan ($27million).

When asked whether Changhe Suzuki tie-up will be ended, Li said the companies talked about the integration after joining China Changan Automobile Group, but after discussion, executives on both sides thought the integration conditions are not mature yet, stressing that both joint ventures, namely, Changhe Suzuki and Changan Suzuki, will in fact coexist on the market.

Executives from the two sides have improved product planning, and will put aside difference, learn from each other's experience, expand cooperation and enjoy mutual benefits in the future.