Magna signs JV deal with Chinese company to build electric-drive powertrains

BUSINESS

Magna signs JV deal with Chinese company to build electric-drive powertrains

The Canadian Press Published Wednesday, October 18, 2017 9:58AM EDT

Donald J. Walker, CEO of Magna International Inc., is silhouetted as he waits for the company's annual general meeting to begin in Toronto on May 10, 2013. (Nathan Denette / THE CANADIAN PRESS)

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AURORA, Ont. -- 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.