7/18/2018

Three Chinese Carmakers Form Ride-Hailing Alliance

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A trio of state-owned Chinese carmakers is launching a joint ride-hailing service to rival foreign-based competitors.

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A trio of state-owned Chinese carmakers is launching a joint ride-hailing service to rival foreign-based competitors, Xinhua News reports.

Chongqing Changan Automobile, Dongfeng Motor and FAW Group also plan to develop vehicles specifically for their unnamed service. Adding self-driving capabilities could come later.

Xinhua offers few details about the jointly funded project. The three companies agreed last December to enter into a broad partnership to speed technology development, pool purchasing and manufacturing resources, launch overseas operations and venture into the market for shared-ride services.

The new venture revives rumors dating to 2015 that FAW and Dongfeng might merge. The speculation surged last year when the two companies swapped high-level executives.

A source tells The Nikkei that both companies and Changan Automobile may be headed for a three-way tie-up. The source notes that Xi Gkuohua, president of rail car maker CRRC, was named president of FAW in June. Xi orchestrated a government-led merger of two train manufacturers in 2025 to create CRRC.