China Automotive forms JV for steering parts
China Automotive Systems Inc. has formed a joint venture with SAIC-IVECO Hongyan Co. to produce power steering systems for commercial vehicles in China.
China Automotive will hold a 70 percent stake in the partnership, which will be called Chongqing Henglong Hongyan Power Steering Systems Co.
The venture will be located in the southwest China city of Chonqing, where SAIC-IVECO is headquartered. SAIC-IVECO produces up to 70,000 heavy trucks a year.
China Automotive, which is based in Hubei province, maintains nine joint ventures with foreign partners. The company can produce up to 3.5 million power steering units a year.
Customers include China FAW Group Corp., Dongfeng Automobile Co., Ltd., BYD Auto Co., Beiqi Foton Motor Co., Chery Automobile Co. and Chrysler Group LLC.
