Beijing Automotive Industry Has Electronic Component Project

On December 13, Beijing Automotive Holdings Co., Ltd. and the world's top 500 companies, the American Lear Corporation, signed a contract in Shanghai to establish Beijing Beiqi Lear Automotive Electronics Co., Ltd.

It is understood that the joint venture company is jointly invested by Beiqi Holding and Lear for US$10 million, each with 50% shares, mainly engaged in the design, R&D, production and sales of automotive wiring harnesses, connection boxes, central control door locks, and tire pressure monitoring systems. And other electronic and electrical products, the company will settle in Beijing Daxing District Chaiyu auto parts base.

A group of Beijing Automotive Holding Co., Ltd., including the newly established leader of Beijing Hainachuan Auto Parts Co., Ltd., visited the Leer Automotive Electronic Technology Center, the Seat Engineering Center, and the Profit Improvement Center in Pudong, Shanghai. Lear's full set of advanced test equipment and various optimization analysis and design costs from materials and cutting to seat molding process have reduced the cost, especially for Lear profit improvement centers for several domestic OEMs. The chair comprehensive improvement plan impressed the leaders of the Beijing auto industry, including the heads of the purchasing departments of several host plants of Beijing Auto Holding.

Xu Heyi, chairman of Beijing Auto Holding Co., Ltd., said at the signing ceremony that the joint venture project of BAIC and Lear is of far-reaching significance. It fills the blank of the Beijing auto industry in the field of electronic components and is the direction that the Beijing auto industry has been striving for over the years. What is more important is that it has laid a solid foundation for improving the market competitiveness of Beijing auto industry products, reducing costs, expanding market share, and moving to the international market.

Bob Ross, global chief executive officer and chairman of the Lear Group, said that from the perspective of the global market, the focus of Lear's future development is in the Asia-Pacific region. In order to achieve the balance of product structure, automotive electronics and electronics are the main targets for further development. direction. Bob Rost emphasizes that in 2006, Lear’s sales in the Chinese electronics and electronics market were US$50 million. The development target for the next three years is to reach US$500 million in sales, of which 100 million US dollars will be newly established. The Beiqi Lear joint venture was produced.

Bob Ross also stated that Beiqi Lear Electronics will not only support enterprises under the BAIC framework, but also hope that it will support some other OEMs in China and even eventually export products to North America and Europe.

According to a related person from Beiqi, the signing of the joint venture contract must be subject to the approval of relevant government agencies. It is expected that the joint venture will be formally registered in the first quarter of 2008.