Nexteer Automotive has signed an agreement to form a joint venture with Dongfeng Motor Parts and Components Group. The joint venture, equally owned by both parties, will design and manufacture electric power steering (EPS) systems for Dongfeng Motor Group and its affiliated companies.
"The formation of a joint venture between Nexteer and Dongfeng Components signifies an expanded relationship in which both companies will greatly benefit," said Tao Liu, senior vice president and global chief operating officer, Nexteer Automotive. "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 business in the Asia-Pacific region now accounts for 24% of the company's total revenue, nearly doubling in the past three years. In 2016, Nexteer launched 21 new major customer programmes in the region and has since been expanding manufacturing capabilities to meet demand. Nexteer currently provides EPS for several Dongfeng affiliated vehicles, including the Peugeot 2008 crossover. Pending regulatory approval, the joint venture will become a strategic in-house producer of passenger vehicle EPS within the Dongfeng Group.
"We continue to seek strategic alliances with OEMs and other business partners," said Mike Richardson, president and executive board member, Nexteer Automotive. "The opportunity to join Dongfeng Components in a unique role of JV partner and producer of EPS for future vehicle platforms further expands our presence in the Asia-Pacific region and contributes to our overall revenue growth objectives."
After clearing regulatory approvals, the joint venture facility will be strategically located in close proximity to the Dongfeng Group headquarters in Wuhan, China.