Chang’an, Geely Set Spat Aside, Form Strategic Alliance

Chang’an Automobile and Geely Holdings sign a strategic cooperation framework agreement aimed at promoting closer working ties between the two Chinese automakers and their various brands.

The agreement, centering on the fields of new energy, intelligence, overseas market expansion and mobility, is meant to improve the core competitiveness of each company, according to a statement jointly issued by Chang’an and Geely.

In April 2023, Chang’an ranked No.3 among China’s automakers by global sales volume, with Geely at No.5.

In the statement, Chang’an and Geely say they will jointly cooperate on what they describe as “power platforms” and “power technology,” terms that indicate the possible sharing of electric-vehicle platforms and drivetrains in future models.

Additionally, they say they intend to explore cooperation opportunities in the fields of battery cells, electronic chips, vehicle operating systems, high-precision mapping, autonomous driving functionality, charging and battery-swap technologies, EV safety and what they called industrial layouts.

At a signing ceremony, Chang’an and Geely also say they will seek a closer working relationship in overseas development as well as industrial internet, blockchain and carbon trading.

Zhu Huarong, chairman of Chang’an Automobile, says: “This strategic cooperation is a model of a strong alliance. Taking this as a new starting point, in the future, the two parties will give full play to their respective strengths.”

Li Shufu, chairman of Geely Holdings, says: “Geely and Chang’an will cooperate closely, increase investment and complement each other's strengths. We will work together to strengthen our core competitiveness.”

Chongqing-based Chang’an, China’s oldest automaker, is the parent company to the Oshan, Kaicene, Shenlan and AVATR brands. It also operates joint ventures with Ford and Mazda.

Hangzhou-based Geely Holding is the parent company to Volvo, Lotus, Proton, Polestar, Zeekr, Radar, Geome and Geometry among other brands.

Confirmation of the agreement between Chang’an and Geely comes after a recent spat between the two companies.

In March, Chang’an’s lawyers issued a letter to the media accusing Geely of violating its intellectual property rights in the design of its new Galaxy line of electric sedans and SUVs, saying it was considering legal options.

The letter was met with a statement from Geely accusing Chang’an of spreading misleading information and false accusations.