Automotive component supplier Valeo has signed a joint venture agreement with FAWER, the parts subsidiary of First Auto Works (FAW), China's largest automaker. The joint venture company, 60% owned by Valeo and located in Changchun, will manufacture air-conditioning compressors for Chinese and export markets.
Joint ventures are planned for the production of wiring systems and park assist sensors, according to Valeo chairman and CEO Thierry Morin. He said Valeo also plans to build a new facility in Wuxi for the manufacture of remote controls, immobilizers, locksets, steering column locks, latches and handles, one in Wuhan for production of engine control units in compliance with Euro 4 regulations, and one in Shanghai for retarders.
Morin said that last year Valeo increased its stakes in Shanghai Valeo Automotive Electrical Systems, Valeo Shanghai Automotive Electric Motors and Nanjing Valeo Clutch Company to 50% or more. Earlier this year it acquired full ownership of Valeo Zexel China Climate Control.