China’s Dongfeng signs JV with Nexteer for power steering systems
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China’s Dongfeng Motor Group Co Ltd will form a joint venture with auto parts maker Nexteer Automotive Group Ltd to design and make electric power steering systems for Dongfeng passenger vehicles, Nexteer said on Monday.
The venture – to be equally owned by Nexteer and a unit of Dongfeng – will set up a facility near Dongfeng’s headquarters in Wuhan, China, Nexteer said.
Nexteer, whose customers include Fiat Chrysler, General Motors, Toyota and Volkswagen , currently provides electric power steering systems for many Dongfeng-affiliated vehicles, including the Peugeot 2008 crossover.
Questions & Answers
Q.Who will own the new joint venture and in what proportion?
Who will own the new joint venture and in what proportion?
The new joint venture will be equally owned by Nexteer Automotive Group Ltd and a unit of Dongfeng Motor Group Co Ltd. This 50/50 ownership structure was announced by Nexteer on Monday.
Q.What is the primary function of the joint venture?
What is the primary function of the joint venture?
The joint venture is being formed to design and make electric power steering systems. These systems are specifically intended for Dongfeng passenger vehicles, according to Nexteer's announcement.
Q.Where will the new facility for the joint venture be located?
Where will the new facility for the joint venture be located?
The new facility for the joint venture will be set up in China. It will be located near Dongfeng Motor Group Co Ltd's headquarters in Wuhan.
Q.Does Nexteer currently supply Dongfeng with power steering systems?
Does Nexteer currently supply Dongfeng with power steering systems?
Yes, Nexteer currently provides electric power steering systems for many vehicles affiliated with Dongfeng. An example given is the Peugeot 2008 crossover, which uses Nexteer's systems.