Partnership between China’s Chery and GAC Shows little development

Gasgoo.com（Shanghai, Feb 29)— There had been little development of the partnership between China’s Chery and GAC in the past two years.

China’s Chery and GAC formally signed a strategic cooperation agreement in Beijing in November of 2012 after China’s government issued policy encouraging combination and restructure of some companies in January of 2012.

At that time, according to the agreement, both sides would cooperate in developing new complete vehicles, core components and alternative energy technology and in improving system construction. Some even believed that the partnership would cover platforms transfer and powertrain.

After less than a year in October of 2013, both sides signed an agreement to share small cars platforms. However, it also turns out to be the only one cooperation between Chery and GAC until now.

Models on sales of GAC were all produced on its own platforms according to an insider of GAC, which indicates that there has been no vehicle produced on the S18 platform transferred by Chery to GAC. Moreover, cooperation on powertrain has not been brought out as expected.

An insider of Chery declares that the partnership involves lots of projects and the latest development is the sharing of the small cars platform. But there has not any models produced on that platform.

But the main reason of slow development of the partnership still remains unknown.