US/China – The 50:50 joint venture will design and manufacture electric power steering (EPS) systems for passenger cars of the Dongfeng Group. Its production facility will be located near to Dongfeng's headquarters in Wuhan, China.
Tao Liu, senior vice-president and global chief operating officer, Nexteer Automotive, said that both partners “will greatly benefit” from the new venture. He added: “By providing our advanced steering technologies specifically tailored to the needs of 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.”
Nexteer said its business in the Asia-Pacific has nearly doubled in the past three years and now accounts for 24% of its revenue. In 2016, the company launched 21 major programmes in the region and has been expanding its production capabilities to meet demand. It currently supplies EPS for several Dongfeng Group vehicles, including the Peugeot 2008 crossover.
Following regulatory approval, the new joint venture will become an in-house producer of EPS within the Dongfeng Group.