Wanfeng to collaborate with FAW, Dongfeng Motor, Changan Auto

Dec 01, 2020 (China Knowledge) - Zhejiang Wanfeng Auto Wheel (002085) has signed a "Research Cooperation Agreement on Magnesium Alloy for Auto Parts Processing Technology" last week with auto giants China FAW Group, Dongfeng Motor Group, and Chongqing Changan Automobile.

This collaboration will allow all parties to capitalize on each other’s technologies and resources to realize deep and broad multi-fields cooperation, and jointly contribute to the development of China's automobile industry. Efforts will be made in the development of wheels, cross car beams and front-end module brackets in a bid to promote the application of large thin-walled complex magnesium die casting auto parts.

As early as Dec 2017, China FAW Group, Dongfeng Motor Group and Chongqing Changan Automobile (known as ‘T3’ consortium) had signed a "Strategic Cooperation Framework Agreement". The three parties would carry out all-round cooperation in four major areas: future technologies and innovations, auto industry’s full value chain, jointly “going abroad”, and new business models to promote the development of China's auto market and enhance the overall strength of Chinese auto brands. Aligned with Wanfeng Auto Wheel’s core competency is the T3 consortium’s OEMs tripartite manufacturing partnership that actively initiates cooperation in the auto parts segment. The "Material processing technology research for magnesium alloy auto parts" has been listed as one of the first batch cooperation initiatives in 2019. Wanfeng Auto Wheel, as a major participant, joined this research initiative in the form of "T3 + 1" mechanism.

Wanfeng Auto Wheel, as a well-known designer and global manufacturer of magnesium alloy castings that closely focuses on the application of lightweight magnesium alloy materials, is also leveraging its Canada-based subsidiary Meridian Lightweight Technologies Holding in enhancing such material’s durability, and reducing the material weight during the manufacturing process. In North America, it currently has more than 65% of the market share, and its customers include global brands such as Porsche, Tesla, Audi, Mercedes-Benz, BMW, Volvo, Land Rover, Toyota and Honda.

The deepening strategic cooperation with the ‘T3’ consortium will further promote the application of Wanfeng Auto Wheel’s magnesium alloy products in the automobile industry, which could rapidly increase its domestic market share.