AUBURN HILLS, Michigan – Nexteer Automotive has signed an agreement to form a joint venture with Dongfeng Motor Parts and Components Group Co., Ltd. (Dongfeng Components), according to a Nexteer news release.
The joint venture, equally owned by both parties, will design and manufacture electric power steering (EPS) systems for Dongfeng Motor Group Co., Ltd. (Dongfeng Group) and its affiliated companies.
Nexteer currently provides EPS for several Dongfeng affiliated vehicles, including the Peugeot 2008 crossover. Pending regulatory approval, the joint venture facility will be strategically located in close proximity to the Dongfeng Group headquarters in Wuhan, and the JV will become an in-house producer of passenger vehicle EPS within the Dongfeng Group.
“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.”
“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.”
Nexteer Automotive is a global leader in intuitive motion control. It delivers electric and hydraulic power steering systems, steering columns, driveline systems as well as advanced driver assistance systems (ADAS) and autonomous technologies for original equipment manufacturers. Nexteer’s business in the Asia-Pacific region now accounts for 24 percent of the company’s total revenue, nearly doubling in the past three years. In 2016, Nexteer launched 21 new major customer programs in the region and has since been expanding manufacturing capabilities to meet demand.