Why are legacy car makers jumping into bed with the Chinese?

May 28, 2026

Corporate hook-ups are happening more frequently between legacy car makers and challengers brands

The face of the UK automotive industry is changing at rapid pace as the Chinese car makers steal market share from their European rivals.

With well priced cars that look good and are packed with tech, the Chinese new entrants are shaking up the industry at a pace the likes of which has never been seen before.

But behind the scenes the car industry veterans are scrabbling to do deals with their Chinese contemporaries in a race to secure their future. So who is dating who?

Elsewhere, Ferrari set the internet alight with the unveiling of its Luce electric car, designed by Apple legend Sir Jonny Ive.

In other news:

  • Cazoo administration to last to 2028

  • Dick Lovett profits hold firm

  • ZEV Mandate review plea

  • Car production falls

  • Citroen brings back 2CV

  • Nissan’s ‘Micra-wave’

  • Arnold Clark’s crazy giveaway

Ok, let’s get into the headlines and my take on the week’s news.

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What’s happening?

Panicked by the onslaught from Chinese car makers, we’re now seeing a very different strategy from embattled European manufacturers.

What was a running pitch-forked battle is rapidly turning towards a truce and a case of ‘if you can’t ’em them, join ’em’.

Some of the biggest names in the industry are now signing deals with once bitter rivals from China as they attempt to save themselves from annihilation. So what’s going on? And who’s getting into bed with whom?