Magna signs lucrative JV with Chinese automaker
Auto parts supplier signed the deal with a subsidiary of state-owned automotive giant Guangzhou Automobile Group Co., Ltd. Magna now operates 50 facilities in China with more than 22,700 employees
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SHANGHAI, China—Magna has entered into a joint venture (JV) in China to make composite liftgates for a global automaker’s crossover vehicle starting in late 2018.
The JV with with GAC Component Co., Ltd. (GACC), a subsidiary of state-owned automotive giant Guangzhou Automobile Group Co., Ltd. (GAC), will produce parts in a new 55,900 square-foot facility located in Changsha, China, with an estimated 116 employees.
“We’re seeing tremendous demand for advanced material innovations as manufacturers pursue all opportunities to take weight out of vehicles to meet emissions requirements,” said Magna Exteriors President Grahame Burrow. “I am very pleased we have formed this JV with GACC as it provides great opportunities for future growth in liftgates and other lightweight exterior products going forward.”
Demand for lightweight, fully recyclable composite liftgates for crossover and sport utility vehicles remains high globally. The fully assembled liftgates are 25 per cent lighter than steel.
Composite materials allow for greater design and production flexibility, and Magna’s full-system assembly and delivery approach include reduced complexity of the total liftgate module, lower tooling investment and increased throughput at the assembly plant.
“Magna’s expertise in advanced materials and manufacturing, combined with GACC’s deep connection in the world’s largest automotive market, certainly ensures the strength of this strategic partnership,” added Burrow.
With the addition of this JV facility, Magna now operates 50 facilities in China with more than 22,700 employees. The company was also recently named Employer of Choice by 51Job.com and Zhaopin.com.