WUHU, Anhui – Delphi recently announced that it has established a new half-shaft joint venture in Wuhu, Anhui Province.
The new $40-million JV is named Saginaw Lingyun Half-Shaft (Wuhu) Co. Delphi will own 60 percent of the equity while Zhuozhou, Hebei Province-based Lingyun Industrial Group Corp., which mainly produces drive shafts, CV joints, rubber hoses and sealing parts, will own the rest.
The JV is expected to go into production in mid-2008 at a facility taking up an area of more than 10,000 square meters, and will primarily supply half-shafts to Chery Automobile, which is also based in Wuhu. This will double Delphi’s Steering and Chassis divisio’s production of half-shafts in China.
Delphi already runs a joint venture with Lingyun – Delphi Saginaw Lingyun Drive Shaft Co., Ltd. in Zhuozhou, about 70 km southwest of Beijing.
To date, Delphi has invested over $500 million in China and has 15 wholly-owned or joint venture subsidiaries, including a $50 million R&D center. These subsidiaries produce over 40 different types of automotive product and supply virtually every local and local-multinational JV automaker in China.