Closer cooperation between EU and Chinese carmakers

19 February 2019

European and Chinese automotive manufacturers have pledged to strengthen their collaboration at a recent summit, with the European Automobile Manufacturers Association (ACEA) and the Chinese Association of Automobile Manufacturers (CAAM) signing a cooperation agreement.

Together, China and the EU, the world’s number one and two markets respectively, make up about half of global passenger car sales and production. Although last year the Chinese car market contracted for the first time in 28 years, sales still reached over 28 million units, accounting for some 30% of total world sales.

′ACEA’s 15 members are truly global companies, with a strong presence in China and other world regions. China is also the number two destination for EU passenger car exports,’ said Erik Jonnaert, ACEA Secretary General. ′That is why we strongly believe in further strengthening the ties between our associations. Today’s signing of the agreement is a landmark moment in this process.’

Dong Yang, CAAM executive vice-chairman, stated: ′So that the Chinese auto industry can continue to flourish; we need to strengthen our policies, standards and regulations. To this end, we are seeking extensive international cooperation to align our industry more strongly with the global market. Our cooperation with ACEA is extremely important, as it will enable us to learn from Europe’s mature standards and regulation system. This partnership will be of mutual benefit to the Chinese and European automobile industries.’

Future collaboration between the two regions will focus on three areas: ′new energy’ vehicles and the infrastructure for charging and refuelling such alternative-fuel vehicles; the widespread introduction of connected and automated driving; and emissions standards and testing for both CO2 and pollutants. The associations also plan to join forces at the global level in order to drive international harmonisation of auto standards and regulations.

The cooperation agreement was signed in the presence of representatives of both the European Commission and the Chinese Mission to the EU.

French carmakers Renault and PSA Group both recently announced new collaborative projects with Chinese firms. As part of its Alliance Group, Renault has invested in PowerShare, an electric vehicle (EV) charging platform start-up based in China, while PSA has put money into FengChe, a Chinese provider of used car supply chain management and transaction services.

Chinese manufacturer Geely owns the Volvo brand, as well as LEVC, maker of London’s black cabs, and has also taken a stake in Germany’s Daimler as it looks to capitalise on technology developments within the companies.