Chery and ArvinMeritor set up chassis
systems joint venture
By Ally From:
Chinese auto maker Chery Automobile Ltd
said recently it will set up a joint venture at Anhui Wuhu with
auto-parts supplier ArvinMeritor Inc. to build chassis systems.
This is the third company from the Global 500 that has
established cooperative relationships with Chery following
Johnson Controls and PPG Industries Inc.
The two parts will co-invest a total of
$20 million for the joint venture, named as ArvinMeritor Chassis
Systems Wuhu Co, of which ArvinMeritor owns a 60 percent stake
and Chery owns the remaining. Scheduled annual revenue for the
venture is $150 million by 2010, the company said. ArvinMeritor
will provide design, engineering and manufacturing support, and
production will begin by August 2008.
"Chery is the fastest-growing auto
maker in China and I believe our cooperation will result in a
win-win situation", said Phil Martens, president of
ArvinMeritor's light vehicle systems group, at the sidelines of
the signing ceremony.
In Chery, ArvinMeritor said it found an
auto maker looking to global suppliers for specific expertise to
help support its ambitious growth plans. It also reflects key
aspects of ArvinMeritor's growth strategy: increasing Asian
business, expanding in emerging markets and growing its
light-vehicle chassis business.