National Electric Vehicle Sweden AB (Nevs) and Dongfeng Motor Corporation (Dongfeng) signed a strategic cooperation agreement on August 17, 2015 to achieve global industrial synergies.
Since July 2015, Nevs has started working with Dongfeng on complete vehicle development projects to enhance Dongfeng’s technical strength and improve Nevs’ own development capability. Now both parties have agreed to expand their cooperation from technical development to further business areas such as global purchasing and distribution network.
Dongfeng has formed several strategic long term partnerships with other international major car manufacturers including AB Volvo and as a 14 percent shareholder of PSA. Dongfeng Motor, with several JVs in China including Peugeot, Citroën, Renault, Nissan, Infinity, Honda and Kia, is one of the world's largest automobile companies, with an annual output over 3.83 million units in 2014 and 1.83 million in the first half of 2015. A long-term and stable alliance with Dongfeng is of great significance for Nevs to achieve its business opportunity.
According to the agreement, Dongfeng will support Nevs on the construction of new energy vehicles production and R&D in Tianjin and the formation of Nevs’ sales and service with support from Dongfeng’s dealer network. Dongfeng will also support Nevs to achieve the new energy vehicle mass production.
Nevs will support Dongfeng on their own brands to meet regulations and technical specifications of overseas markets, and assist DFM to develop important markets in Europe and North America.
“Dongfeng is one of the leading vehicle company groups in the world. Through this cooperation, Nevs’ will be able to create industrial synergies, share the development costs, expand the supplier bases and increase the overall competitiveness for our own future products. This cooperation is one of the steps for Nevs to become a front-runner in the automotive industry, with focus on electric vehicles” said Mr. Mattias Bergman, President, Nevs.
DFM Brief Introduction
Dongfeng Motor Corporation (DFM) is the third biggest Chinese state-owned automobile manufacturer headquartered in Wuhan, Hubei Province. As of December 2014, DFM had in total approximately 176 000 full-time employees.
DFM is connected with a variety of international OEMs and produces a wide range of foreign products in China including those of Peugeot, Citroën, Renault, Honda, Kia, Nissan and Infinity. The total output in 2014 was 3.83 million units with revenue of 483 billion RMB.
In 2012 DFM acquired 70% of T engineering, a Trollhättan based engineering company and a spin off from Saab Automobile Powertrain, as their first R&D center overseas.
In 2014, DFG became the 14% shareholder of PSA Peugeot Citroën.
DFM is listed as no.113 in the world on Fortune 500.
Mikael Östlund Director Communications and Public Affairs
To mark start of construction of Nevs' New energy vehicle factory in China, and the establishment of a R&D-center, a groundbreaking ceremony will be held in Tianjin June 28.
The Tianjin manufacturing plant will be Nevs' second global production base focused on EVs, initially for the Chinese market. Nevs' research, development and production will be managed from its headquarters in Trollhättan.
Together with two new Chinese part owners Nevs will establish its second global factory with focus on electric vehicles and a second global research and development center in the city of Tianjin, neighboring Beijing City and Hebei Province, three highly-integrated economic regions with a population over 100 million.
With the new part owners, Tianjin city’s Tianjin Binhai Hi-tech industrial Development Area (THT), and the Beijing State Research Information Technology Co., Ltd. (SRIT), Nevs has got two new strategic partners.
Tianjin is one of the biggest coastal cities in China and has significantly promoted new energy vehicles both in the form of consumer subsidies and official procurements.
The Tianjin city’s fast growing national level demonstration zone THT embraces a long history of automotive industry. Here is where the joint venture production plant will be built. This will give Nevs a strong foothold on the increasing EV market in the area and China, as well as provide Nevs access to the existing automotive supplier base in the region.
SRIT is a pioneering IT service provider owned by China’s Research Development Center of the State Council, and the telecommunications giant China Unicom.
As software services and connectivity as well as new energy vehicles are the major and increasing trend within the automotive industry, the cooperation with SRIT and its owners will give Nevs a unique possibility to place itself at the forefront of connectivity for the future. SRIT as a partner will also open up more opportunities for Nevs.
The first car that will be produced in the plant in Tianjin is an electric vehicle based on Nevs’ technology, followed by a diversified EV and portfolio of battery electric vehicles and EVs based on Nevs’ new developed vehicle architecture.
“Nevs’ focus is to produce high quality electric vehicles with China as its initial main market. The long-term cooperation with the development area THT in Tianjin and the IT pioneer SRIT will help us achieve our vision and our goal of a global strategic presence and is an important addition to the resources we have in Trollhättan”, says Nevs president Mattias Bergman.
Director Communications and Public Affairs
Tel: +46 5208 5100