Magna has announced of its joint-venture (JV) agreement with Huayu Automotive Systems Co Ltd HASCO), a subsidiary of SAIC Motor, to expand global electrified powertrain offerings, and strengthen its local footprint in China. The JV will initially produce an electric-drive powertrain system for a German automaker, Magna said. For this initial customer order, the JV will leverage Magna's innovative, highly integrated e-drive system with a focus on the production of the system mainly for the Chinese market.
Both Magna and HASCO will give the JV full support to develop localised core competencies in terms of market development, R&D, advanced manufacturing and key parts supply, the company noted. The critical parts that will be supplied include gearboxes, inverter components and e-motors, which are key to delivering advanced powertrain technologies and a stronger product portfolio to customers, it said.
The new-energy vehicle (NEV) market will continue to grow at a rapid speed in China, noted Chen Zhixin, President, SAIC Motor and Vice Chairman, HASCO. He said that with this trend, SAIC Motor is developing the new four modernisation strategy focusing on car electrification, connectivity, intelligence, and sharing economy. Establishment of the JV has been a milestone for HASCO to develop its core competencies in the field of key new-energy-related components, and a measure to strengthen the new strategy for SAIC, added Zhixin.
Don Walker, CEO, Magna, said China is the number-one growth market in the world, and they have been clear about their intended leadership in bringing hybrid and electric vehicles to market. Combining strengths with HASCO helps position Magna and the JV for future growth and success, he added.
Magna is said to have the skills and experience to develop and manufacture electrified powertrains. This includes key components for modern e-drive systems including electric-motor, gearbox, inverter and control software. For almost 10 years, Magna has been supporting customers in the U.S. and Europe from concept to production with products for battery electric and plug-in hybrid vehicles.