Auto parts maker Magna International Inc. has signed a joint-venture agreement with Chinese company Huayu Automotive Systems Co., Ltd., a subsidiary of SAIC Motor.
The partnership plans to produce an electric-drive powertrain system for an unidentified German automaker.
Magna says the deal will see it will bring its integrated e-drive system to China as both companies work to improve market development, research and development, advanced manufacturing and key parts supply.
Magna chief executive Don Walker says the deal helps position Magna and the joint venture for future growth.
The company, based in Aurora, Ont., (TSX:MG) has more than 300 manufacturing operations and 100 product development, engineering and sales centres around the world.