AUBURN HILLS, Mich. – Chinese-owned Nexteer Automotive signs a joint-venture agreement with Dongfeng Components to design and manufacture electric power-steering systems for Chinese automaker Dongfeng and its affiliates.
“The formation of a joint venture between Nexteer and Dongfeng Components signifies an expanded relationship in which both companies will greatly benefit,” Tao Liu, senior vice president and global chief operating officer-Nexteer Automotive, says in a news release.
“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.”
Nexteer’s business in the Asia-Pacific region now accounts for 24% of the company’s total revenue and nearly has doubled in the past three years. In 2016, Nexteer launched 21 new major customer programs in the region and since has been expanding manufacturing capabilities to meet demand.
North America’s No.1 supplier of steering systems was founded in Saginaw, MI, in 1906 and became a division of General Motors in 1917. It later was part of Delphi before being sold in 2010 to Pacific Century Motors, which is controlled by Aviation Industry Corp. of China. Several manufacturing plants remain in Saginaw, but Nexteer opened its new world headquarters in Auburn Hills, MI, last year.
Nexteer currently provides electric power steering for several Dongfeng-affiliated vehicles, including the Peugeot 2008 CUV. Pending regulatory approval, the JV will become a strategic in-house producer of passenger vehicle EPS within the Dongfeng Group.
The JV facility will be located near Dongfeng Group headquarters in Wuhan, China.
Nexteer Automotive employs more than 13,000 people at 24 manufacturing plants, five regional engineering centers and 11 customer service centers located in North and South America, Europe and Asia.
