Nexteer Automotive, an Auburn Hills-based global leader in intuitive motion control, has signed an agreement to form a joint venture with Dongfeng Motor Parts and Components Group Co. in China. The joint venture, equally owned by both parties, will design and manufacture electric power steering (EPS) systems for Dongfeng and its affiliated companies.
“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,” says Tao Liu, senior vice president and global COO of Nexteer.
Nexteer’s business in the Asia-Pacific region now accounts for 24 percent of the company’s total annual revenue. In 2016, Nexteer launched 21 new major customer programs in the region and has since been expanding manufacturing capabilities to meet demand.
Pending regulatory approval, the joint venture will become a strategic in-house producer of passenger vehicle EPS within the Dongfeng Group. Nexteer currently provides EPS for several Dongfeng affiliated vehicles, including the Peugeot 2008 crossover.
“We continue to seek strategic alliances with OEMs and other business partners,” says Mike Richardson, president and executive board member of Nexteer Automotive. “The opportunity to join Dongfeng Components in a unique role of joint venture 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 located near the Dongfeng Group headquarters in Wuhan, China.