Nexteer Automotive, which is one of the key players in intuitive motion control technology has agreed to form a joint venture with the Chinese company, Dongfeng Motor Parts and Components Group Co. Ltd (Dongfeng Components). Both companies will have 50 per cent stake in the joint venture company which will design and manufacture electric power steering (EPS) systems for supply to Dongfeng Motor Group Company Limited (Dongfeng Group) and its affiliated companies.
Speaking about the joint venture, Tao Liu, senior vice president and global chief operating officer, Nexteer Automotive said that the formation of the joint venture will broaden the relationship between the two companies and will be of great benefit to both parties.
He said, “By providing our advanced steering technologies specifically tailored to the needs of our customers like Dongfeng, we continue to increase our presence in the growing Chinese market which is a core component of Nexteer’s strategy for profitable growth.”
Nexteer’s sales in the Asia-Pacific region is on the growth track, with the region now accounting for 24 percent of the total revenue of the company and almost doubling over the past three years. Last year alone, Nexteer had launched 21 new major customer programs in the region and has been upgrading its manufacturing facilities to cater to the increase in demand.
Currently, Nexteer currently provides EPS for several models made by Dongfeng, including the Peugeot 2008 crossover. After obtaining final approval from the regulatory bodies, the newly formed joint venture company will function as in-house producer of passenger vehicle EPS within the Dongfeng Group.
Mike Richardson, president and executive board member, Nexteer Automotive said that the company would continue to seek strategic alliances with OEMs and other business partners. He said that the opportunity to join Dongfeng Components as a JV partner and producer of EPS for future vehicle platforms will help Nexteer to further expands its presence in the Asia-Pacific region and contribute to its overall revenue growth objectives.
The joint venture company will be setting up a factory close to the Dongfeng Group headquarters in Wuhan, China after getting the required approvals.
Manju Mathew, an MBA in marketing, completed publisher training courses from the Oxford Brookes University and New York University. She started with marketing and PR roles before moving on to her current position as a full time writer. Currently living in Dubai, her life as an expat has sharpened her observation skills and flair for writing. She enjoys writing about luxury cars like Ferrari, Lamborghini, etc even if she can only dream of owning them.
Your email address will not be published. Required fields are marked *
© 2017 Morjan Media LLC. All Rights Reserved.