Delphi, Lingyun launch auto-parts JV in Chery home

Shanghai, May 30 (Gasgoo.com) Saginaw Lingyun Driveshaft Co (Wuhu) Ltd, the joint venture (JV) of Delphi Corporation and Lingyun Industrial Group, has been completed in China's eastern province of Anhui and will go into operation next month.

Delphi is the world's largest auto-parts maker, and Lingyu is a leading Chinese manufacturer of auto parts. With total investment of 60 million dollars, their JV facility in Wuhu city (home to Chery Auto) of Anhui province will focus on making and selling drive systems, constant velocity universal joints (CV joints) and related auto parts. The new company will also provide after-market and technical services. The output of CV joints and driveshafts is expected to reach 700,000 sets in 2010. 

Delphi will hold 60 % in the joint venture and Hebei province-based Lingyun will own the remainder. The 10,000-square-meter auto-parts production facility will employs around 500 people when it starts full operation in June 2008, enabling Delphi to double its auto-parts output capacity in China.

Since 1993, Delphi has established a solid footprint in China, with a world-class research and development center, mature manufacturing facilities, and customer service centers in many cities including Beijing, Shanghai, Guangzhou, Suzhou, Wuxi, Yantai, Changchun, Baicheng, and Wuhu.

In January 2007, Delphi signed a deal worth more than $230 million with Wuhu-based Chery Auto, one of China's largest own-brand carmakers. Starting in 2009, Delphi will supply Chery with auto safety parts, including occupant protection systems, integrated navigation systems, safety airbags, audio systems, among others.