Chinese carmakers joining forces to develop car software

A case of united we stand, with a hint of nationalism as well, by the looks of it. The Nikkei reports that in a bid to reduce its industry’s dependence on foreign manufacturers for key components and software, Chinese automakers are joining forces to develop the necessary digital technology for vehicles.

The report says that Shanghai Automotive Industry Corp (SAIC), China FAW Group, Changan Automobile Group and Chery Automobile have banded together with a software maker affiliated with the state-run China Electronics Technology Group to form an organisation to build and commercialise automotive technology.

Elsewhere, Changan, FAW and Chery are also collaborating separately with local firms and universities in Chongqing, Jilin Province and Anhui Province respectively, in a bid to ramp up the development process.

In terms of engines and transmissions, Chinese carmakers are already shifting towards domestic suppliers to provide the necessary, but for items such as semiconductors and engine control software, they’re still reliant on foreign imports and technology, which is what they’re hoping to address. Along the way, all this also means growth for Chinese companies in the auto parts business.

© 2011 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Fri, 06 May 11 16:31:58 +0000.

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