On February 24, 2014, Weichai Power Co., Ltd. and JAC Motor Co., Ltd. officially signed a strategic cooperation agreement in Weifang. The two sides formally established a strategic partnership. This means that in the future, both parties will have more in-depth cooperation in the R&D, manufacturing, sales and service of related products and components.

It is understood that in recent years, Jianghuai Automobile has entered the fast lane of development, especially heavy truck sales have steadily increased. In 2013, sales reached 29,000 units, a year-on-year increase of 42%, and the market share was 4.3%, firmly occupying the sixth place in the industry. In order to consolidate the relationship with parts and powertrain suppliers and achieve a win-win situation, JAC Motors and Weichai Power hit it off.

According to the agreement, the two parties will establish a rapid response mechanism through deepening cooperation, especially in the field of heavy-duty truck engines, and integrate quality resources of both parties in terms of simultaneous development, lean production, service sharing, and market synergy to enhance the competitiveness of both markets.

Some industry experts predict that this agreement will give full play to the advantages of both parties and effectively reduce costs, which will prompt Jianghuai Automotive to further increase sales and expand market share. The increasingly obvious advantages of strategic alliances will also encourage more automakers to strengthen strategic alliances with parts and assembly systems companies.


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