AFX reports that Shanghai-based Yanfeng Visteon Automotive Trim System Co Ltd and Dongfeng Electronic Technology Co Ltd have jointly invested a total of $30 million to set up an auto components joint venture in the central Chinese city of Wuhan. The report cited as source an official with Yanfeng Visteon said.
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Yanfeng Visteon is a 50-50 joint venture between Shanghai Automotive Industry Corp (SAIC) and US-based Visteon Corp, while Dongfeng Electronic Technology is a subsidiary of Dongfeng Motor Corp.
The official, who did not want to be named, told AFX that Visteon holds a 20 pct stake in the Wuhan venture, and Yanfeng Visteon and Dongfeng Electronic Technology each hold a 40 pct stake.
According to the anonymous official quoted in the AFX article, it is the first time that the two domestic automakers – SAIC and Dongfeng Motor – have cooperated in the auto component and spare parts business.
