Magna Pens Seating Joint Venture Deal with Chinese-based Firm

Just recently, Magna International Inc. and Chongqing Hongli Zhixin Automotive Parts Manufacture Co., Ltd. have penned a 50/50 joint-venture deal to provide seating systems and components to Changan Ford and other customers in China.

Hongli Zhixin, a premier independent seating supplier in the country with capabilities in trim, foam and structures as well as established OEM customers, brings its production facility in Harbin and two manufacturing programs to the joint venture. As per the terms of the agreement, a Hongli Zhixin-Magna headquarters will be established in Chongqing.

This joint venture is anticipated to reinforce Magna’s position in China by offering extra regional knowledge of customer and market anticipations, boosting the competitiveness of its cost structure through vertical integration and facilitating faster response times.

According to Mike Bisson, President of Magna Seating, Hongli Zhixin, with their strong position in the Chinese seating market, represents a strategic partner for them in China. He said that the combination of their global seating expertise and their knowledge of the Chinese market offers an exceptional value proposition that eventually positions both companies for growth opportunities in the future.

In a statement, Wang Zhonglian, Chairman of Hongli Zhixin said the combination of Hongli Zhixin’s local knowledge with Magna Seating’s global network and world-class manufacturing convinces her that their joint venture would provide their customers with superior values, which would help support their growth in China.