Under a strategic partnership agreement inked by the two companies last week, Johnson Controls will supply auto parts to Geely and the two sides will cooperate on the development of alternative energy vehicles, Geely said in a statement.

To support its strategic transformation from an affordable car maker to one that makes "the safest, the most environment friendly and energy efficient cars", Geely is now instituting a core suppliers system, says Zhang Xiaodong of the company"s public relations department.

Geely plans to engage about 40 parts producers in and outside China as its core suppliers in the near future. Earlier this month, it signed up South Korea auto design and engineering company Daeyee Group and Chinese auto interim suppliers Zhejiang Limin Co. as its first two core suppliers

Meanwhile, Geely has phased out 385 parts suppliers from its existing supply base over the past three years as these companies cannot meet its "one low and three highs" requirements for core suppliers, which are low prices, high quality, high technology and high loyalty, the company said in a statement.

Johnson Controls currently supplies seats to Geely's newly launched Emgrand mid-sized sedans.