August major joint ventures overview: FAW Teams Up with Volkswagen, Chengdu Launches New Jetta; XPeng Expands Technical Cooperation with Volkswagen

In reviewing the past August, the automotive industry's joint ventures and collaborations have reached a new peak. For example, FAW teamed up with Volkswagen, Chengdu is revamping the new Jetta, SAIC-GM partnered with Momenta, XPeng and Volkswagen expanded their technical cooperation, Valeo secured three major new businesses with Chinese car companies, and Hesai obtained a designated lidar project from a brand under Toyota. This article summarizes the joint ventures and collaborations that occurred in August. 

FAW joins hands with Volkswagen to recreate the new Jetta in Chengdu.

On August 28th, China FAW, Volkswagen Group China, and the Chengdu Economic & Technological Development Zone Management Committee signed the "Jetta Business Development Cooperation Agreement" in Chengdu, Sichuan. They are preparing to establish a new company for the Jetta brand, with the aim of jointly developing Jetta into a leading enterprise in Sichuan's automotive industry.

Image source: China FAW

According to the agreement, a new Jetta brand company will be established to fully integrate Jetta's existing resources and introduce local investment, jointly developing Jetta into a leading enterprise in the automotive industry of Sichuan Province. Meanwhile, the Jetta brand will advance its electrification transition, with the first new energy model launching in 2026 and completing the lineup of four entry-level new energy models by 2028. Additionally, leveraging China's advantages in production and manufacturing, the Jetta brand plans to expand into overseas markets, starting with Central Asia.

The signing of this deepened cooperation agreement fully demonstrates Volkswagen Group's determination to continue cultivating the Chinese market. It also conveys its firm intention to join hands with local partners such as China FAW Group and Chengdu to achieve mutual benefit and win-win outcomes.

FAW Bestune and Jiangsu Yueda Group have reached a strategic cooperation agreement.

On August 21, FAW Bestune Automobile Co., Ltd. and Jiangsu Yueda Group officially signed a strategic cooperation agreement in Changchun, Jilin, marking a new phase in their collaboration.

Image source: Jiangsu Yueda

According to the agreement, both parties will adhere to the principles of "equality and mutual benefit, complementary advantages, innovative development, and win-win cooperation," fully leveraging their respective resource advantages, expanding cooperation dimensions, and establishing a long-term and stable strategic partnership. The cooperation covers multiple fields, including equity investment, manufacturing, supply chain collaboration, R&D technology, and sales services, aiming to jointly promote high-quality development of the enterprises.

The signing of this contract is expected to enable both parties to achieve resource sharing and complementary advantages.

SAIC General Motors partners with Momenta

On August 18th, SAIC General Motors and Momenta officially signed a strategic cooperation agreement. The two parties will engage in deep technological integration in the field of assisted driving and jointly develop assisted driving solutions tailored for China's complex road conditions.

Image source: SAIC General Motors

According to the agreement, the first model of Buick's high-end new energy sub-brand "Zhi Jing" — the intelligent luxury sedan Zhi Jing L7, will for the first time globally be mass-produced with the R6 Flywheel large model developed by Momenta. This model is the first in China to be based on an end-to-end architecture with a reinforcement learning algorithm, autonomously optimizing decision-making mechanisms through simulated environments, breaking through the limitations of traditional imitation learning.

This collaboration is not only a critical move for SAIC-GM's intelligent transformation but also a significant milestone for the commercialization of Momenta's technology.

XPeng Motors and Volkswagen Group Expand Cooperation on Electronic and Electrical Architecture Technology

On August 15, XPeng Motors and Volkswagen Group jointly announced that following the signing of the strategic cooperation joint development agreement on electronic and electrical architecture technology on July 22, 2024 ("Joint Development Agreement"), the industry-leading electronic and electrical architecture jointly developed by both parties is accelerating its development at "China speed" and has achieved critical project milestones.

Image Source: XPeng Motors

Based on the consensus between both parties to expand the application scope of electronic and electrical architecture, achieving a cross-platform and cross-power energy form electronic and electrical architecture platform within the Volkswagen Group, both parties have signed an agreement to expand the strategic cooperation in electronic and electrical architecture technology ("Expanded Cooperation Agreement"). The signing of this expanded cooperation agreement signifies that the industry-leading electronic and electrical architecture jointly developed by both parties will not only be integrated into Volkswagen's pure electric vehicle platform in the Chinese market but will also be deployed on Volkswagen's fuel and plug-in hybrid vehicle platforms in the Chinese market. The technical strategic cooperation between both parties will expand to a broader market.

The expansion of the scope of this cooperation marks another key milestone in the long-term strategic collaboration process between the two parties.

Yu Chengdong and Yin Tongyue signed the Smart World Strategic Cooperation 2.0 Agreement.

On August 7, Chery Automobile and Huawei Terminal officially signed the Smart World Brand Strategy 2.0 Cooperation Agreement in Shenzhen. Both parties agreed that Smart World will adjust its operational structure to achieve an integrated independent operation of production, sales, and services, increase financial investment, and launch several major new models, including the Smart World R7 and Smart World S7.

Image source: ZhiJie Auto

According to the strategic cooperation agreement, Zhijie will adopt an independent structure with autonomous decision-making. Huawei and Chery will further clarify the division of labor and optimize cooperation processes. In the future, Huawei will dominate the management and strategic decision-making of the Zhijie brand, with Chery fully cooperating.

This strategic upgrade further clarifies the differentiated positioning of Zhijie within the Huawei HarmonyOS ecosystem.

Supply chain

 Ningbo Joyson Electronic Corporation and Alibaba Cloud Reach Comprehensive AI Collaboration

On the evening of August 26, Joyson Electronics officially announced that its subsidiary, Ningbo Joyson Intelligent Robotics Co., Ltd., has recently signed a cooperation agreement with Alibaba Cloud Computing Co., Ltd.

Image Source: Joyson Electronics

Both parties will engage in comprehensive AI collaboration in the field of embodied intelligent robots, based on Alibaba Cloud's full range and full-size Tongyi Qianwen artificial intelligence (AI) models. The collaboration will focus on scenarios such as industrial manufacturing, medical care, and special operations, aiming to develop robotic intelligent agents with advanced cognitive, decision-making, and interaction capabilities. They will also jointly promote the implementation of localized solutions in overseas markets.

This collaboration is expected to advance technological innovation in the field of embodied intelligence to a new level.

Desay SV and Dongfeng Motor sign strategic agreement.

On August 18, it was learned from the official announcement of Desay SV that it held a strategic cooperation signing ceremony with Dongfeng Motor Corporation in Wuhan.

Image Source: Dongfeng Motor

The two parties announced plans to deepen cooperation in six areas: "localization, vehicle-road-cloud integration, joint innovation, transparent supply chain, green supply chain, and market-competitive products." They plan to establish a co-creation R&D model in fields such as intelligent cockpits, driver assistance, body domain control, display products, and intelligent entry, aiming to bring more market-competitive products to fruition.

Desay SV and Dongfeng Motor are not collaborating for the first time; the two parties have a longstanding foundation of cooperation. The establishment of this strategic partnership is a further deepening based on their previous successful collaborations.

Valeo Continuously Secures Three Major New Businesses from Chinese Automakers

On August 18, it was announced that Valeo has recently disclosed three new project allocations, adding strong momentum in the fields of electrification and ADAS.

Specifically, Valeo's external active grille shutter (AGS) has successfully secured a new project from a leading domestic new-energy vehicle manufacturer. The lifecycle production volume for this collaboration is approximately 1 million units, with mass production expected to commence in July 2026. The Valeo Jingzhou R&D Center will focus on design resources, while the Foshan factory will take charge of production. The products will be supplied simultaneously to both domestic and overseas markets.

Additionally, Valeo's fully integrated 5-in-1 power electronics module has secured new business with major Chinese car manufacturers. This solution employs deeply integrated electrical and software fusion technology, achieving approximately a 20% weight reduction and supporting the development of the next-generation electric drive systems and the technological evolution of vehicle architectures for clients.

In addition, Valeo announced a partnership with a leading Chinese automaker to equip the automaker's new model with the latest panoramic display technology. This technology is a panoramic head-up display system (P-HUD) that spans the entire area between the two A-pillars of the front windshield.

Successfully securing three major new project awards will undoubtedly inject strong momentum into Valeo's presence in the electrification and ADAS fields.

Hesai receives a lidar designation from Toyota's subsidiary brand.

On August 15th, Hesai Technology announced that it has been selected for the mass production of LiDAR by a joint venture brand under Toyota Motor. Its new energy models will be equipped with Hesai's compact ultra-high-definition long-range LiDAR ATX, with mass production set to begin in 2026.

Image Source: Hesai Technology

According to reports, the Hesai ATX is equipped with Hesai's cutting-edge fourth-generation chip architecture technology, with comprehensive upgrades to the optical design and laser transmitting and receiving modules, achieving a combination of compact size and strong performance, which is highly favored by major OEMs.

This collaboration demonstrates Toyota's proactive approach in advancing the research and implementation of new energy vehicles, while accelerating its intelligent strategy layout. It focuses on the practical application and localization of advanced driver-assistance technology, aiming to achieve breakthroughs in technology transformation and market response.

CALB and GAC High-Tech sign a long-term strategic cooperation agreement.

On August 8th, GAC AION and China Innovation Aviation Technology Group Co., Ltd. (referred to as China Innovation Aviation) officially signed a strategic framework cooperation agreement. The two parties agreed to engage in deep collaboration in the field of eVTOL (electric vertical take-off and landing vehicles) and jointly promote the standardization of eVTOL power products.

Image source: CALB

Previously, the batteries of CALB have already completed joint validation of the battery system with the GOVY AirCar. The signing of this strategic cooperation agreement not only represents GAC-GOVY's recognition of CALB's battery technology capabilities, but also signifies CALB's deep involvement in the flying car industry.