AUBURN HILLS — The joint venture between GKN Automotive and Shanghai-based HUAYU Automotive is investing $850 million over the next five years to meet the growing demand for the company’s driveline systems, all-wheel drive systems, and hybrid technologies.
“The scale of the investment reflects our commitment to global and domestic automakers as their businesses in the world’s largest vehicle market evolve,” says Andrew Reynolds Smith, GKN Automotive CEO in Auburn Hills.
Automotive production in China is expected to grow 42 percent by 2022, increasing from 22.6 million vehicles in 2014 to 32.1 million, while demand for all-wheel drive systems is expected to grow by 140 percent in the same period.
Construction of a technical center in Shanghai for the joint venture is due to complete in December. The facility will provide research and development capability for driveline systems, including vehicle integration, software development, and vehicle testing capabilities.
“Cutting edge technology is critical for our customers globally and in China,” Smith says, “particularly as the next generation of all-wheel drive and hybrid vehicles launch, creating new levels of competitive advantage in the market.”
GKN Automotive operates 11 plants across China. This investment further strengthens its position as the global leader in advanced driveline technologies.