Power steering specialist China Automotive Systems’ (CAAS) subsidiary Great Genesis Holdings is forming a joint venture (JV) with Beijing Automobile Industrial Holdings subsidiary, Beijing Hainachuan Auto Parts. The JV, Beijing Hailong Automotive System, will design, develop and manufacture hydraulic and electric power steering systems and parts for Beijing Auto.
The JV will be owned 50/50 by CAAS and Beijing Auto with the former nominating four board members and Beijing Auto, three.
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A new production facility should operational within 18 months with capacity for 300,000 units of hydraulic and 200,000 units of electric power steering systems plus associated parts. This will be located about 70km [45 miles] from Beijing airport and 110km [70 miles] from Tianjin port to provide cost-effective shipping. Total investment is forecast at US$20m, with $10m spent in the first year and shared equally by both partners.
The CAAS Research Institute will work closely with Beijing Auto R&D to develop new steering systems to meet specific needs.
CAAS chairman Hanlin Chen said: “This JV is another milestone after our JV with Chery Auto in 2007.”
CAAS in mid-2009 began steering gear shipments to its first global OEM customer, Chrysler Group. The Chinese parts are fitted to the Jeep Wrangler off-roader.
