Australia – Geely Holding Group, one of China’s private independent automakers, acquired Australian automatic transmission supplier Drivetrain Systems International (DSI) on March 27, according to a Geely’s press release. Executives of both companies attended the signing ceremony held at the government house of New South Wales, Australia.
DSI is the world’s second largest automatic transmission supplier and one of the only two automatic transmission manufacturers that are independent from OEMs. DSI, with a history of more than 80 years, has an annual capacity of 180,000 gearbox units and it is a major supplier to Ford, GM, Chrysler and Ssangyong. BorgWarner Corporation, a 100-year-old auto parts supplier, had once 100 percent owned DSI for 30 years. But DSI entered bankruptcy proceedings in February under the impact from global financial crisis, Geely said in a statement.
Under the agreement, Geely will provide funds to support DSI’s R&D activities and help DSI to maintain its leading position in the global automatic transmission system market. Geely will also help DSI resume its normal business operation and introduce DSI’s products and technologies to China. Meanwhile, Geely promises to maintain DSI brand and its independence for a better service to its global clients.
Geely, trying to change its image of a low-end car manufacturer, is ambitiously keen on expanding into overseas markets. With the acquisition of DSI, Geely could take advantage of DSI’s recourses and technologies to improve its own products and gearbox development abilities.
Geely sold 221,823 vehicles last year, ranking ninth among the top 16 automakers by sales volume, according to CBU-Autostats.