ArvinMeritor inks supply deal with China's auto maker

ArvinMeritor, a U.S. auto parts supplier, has inked supply deal with China’s auto maker Chery Automobile Co Ltd and South Korea's Hyundai Motor, in an attempt to generate US$1 billion in revenue from its operations in Asia within the next five years.

Under the agreement, ArvinMeritor's Light Vehicle System group will supply approximately 10 million complete shock and strut module assemblies to Chery over the next five years, with production set to start in early 2009.

The assemblies are set to be provided by AvinMeritor Chassis Systems (Wuhu) Co Ltd, a joint venture established in 2007 between ArvinMetritor Investment (China) Holding and Wuhu Chery Technology.

ArvinMeritor said in a statement that it will also supply more than two million window regulator motors to Hyundai Motor, and supply Hyundai's Chinese-made Elantra sedans from mid-2008 to mid-2012. The company will produce the 'New Generation Motor II' at its factory in Zhenjiang, Jiangsu province.

Facilitating with its plan, the firm has set up a technical center in Shanghai for its Light Vehicle Systems group, which will serve as an engineering center for the whole Asian region.