Two major Chinese automakers, FAW Group Corp and Dongfeng Motor, announced Friday plans for a joint innovation center.
According to the deal signed Friday, the center will explore smart connectivity, fuel cells and lightweight technologies. It will also offer training and unify suppliers.
FAW chairman Xu Ping said the cooperation will strengthen respective competitiveness of the two firms.
FAW, based in the northeastern city of Changchun, has joint ventures with Germany's Volkswagen AG and Japan's Toyota Motor, while Dongfeng, located in the central city of Wuhan, has joint ventures with France's PSA Peugeot-Citroen and Japan's Honda Motor.
In 2016, vehicle sales of Dongfeng and FAW in China ranked second and third among all automakers.