Geely Auto Holding Group Limited subsidiary company, Geely Luo You Engine Company Limited is to establish a new joint venture with Aisin AW Company Limited (Aisin) for the production of six speed gearboxes, parts and sales with the initial plan to produce 400,000 units per year by 2020.
Under the agreement framework, the joint venture will have a registered capital of 117 million USD, with Aisin injecting 70.2 million USD and establishing a 60% share, Geely Luo You will invest 46.8 million USD and receive a 40% share.
Aisin was established in 1969 and has become a world renowned for the development and production of automatic gearboxes, propelling Aisin to having the worlds largest market share of gearboxes.
With the launch of Geely’s two core strategies ‘20200 Strategy’ and ‘Blue Geely Initiative’, Geely has a greater demand for high end automatic gearboxes that offer upwards of six gears with Geely’s own capacity for gearbox production not being able to keep up with demand. The establishment of this new joint venture will allow for Geely to introduce new products that fit with the consumers demands for superior driving and comfort as well as fuel efficiency. By creating a new joint venture, Geely is able to take part in the management of the operations, and lower purchasing costs and raise efficiency.
Geely Auto Group President and CEO, Mr. An Conghui commented: “By establishing this new joint venture with Aisin we will be able to raise Geely’s core competencies in powertrain development and production, and accelerate our 20200 Strategy and Blue Geely Initiative. From today both parties will be able to work together on technology development and application to create a long term strategic partnership.”
