SHANGHAI – Magna International (Hong Kong) Inc. and Chongqing Hongli Zhixin Automotive Parts Manufacturing Co., Ltd. announced on November 25 to form a 50:50 joint venture to supply complete seating systems and seating components to Chang’an-Ford and other customers in China, according to a Magna news release.
Named as Hongli Zhixin-Magna, the new JV’s headquarters will be based in Chongqing.
Hongli Zhixin is a leading independent seating supplier in China with competitive capabilities in foam, trim and structures. It will integrate its manufacturing facility in Harbin and two production programs into the new JV.
Hongli Zhixin-Magna can better understand its customers and market scenarios by refining its cost structure through deep vertical integration and improved response time, said the news release. So it holds the power to further strengthen Magna’s position in China.
Mike Bisson, president of Magna Seating, said: “Hongli Zhixin is an important partner for us in China. The combination of Magna’s global seating expertise and Hongli Zhixin’s insightful perception into the Chinese market delivers a unique value proposition, which ultimately empowers us to bravely face the challenges ahead.”
Wang Zhonglian, chairman of Hongli Zhixin, said: “I am confident that our joint venture will provide better service to our customers with the combined strengths of local market knowledge, competitive manufacturing capabilities and strategic global business layout.”