Nexteer, Dongfeng Partner on Electric Steering Systems in China

Nexteer Automotive Group and Dongfeng Motor Parts and Components Group have agreed to form a 50:50 joint venture in China to supply electric power steering systems to Dongfeng Motor Group and its alliances with foreign carmakers.

The partners offered no financial or sales details. The venture will be based near Dongfeng Group headquarters in Wuhan and operate as an in-house supplier. Dongfeng units operate carmaking ventures in China with Honda, PSA, Nissan and Renault.

Steering and driveline supplier Nexteer, which was acquired by China’s Pacific Century Motors in 2010, already supplies electric steering systems for several models made by Dongfeng carmaking ventures.

Based in Auburn Hills, Mich., Nexteer supplies such carmakers as BMW, Fiat Chrysler Automobiles, Ford, General Motors, PSA, Toyota and Volkswagen. The company currently generated 24% of its revenue in Asia Pacific.