China Automotive Begins Steering Gears Supply To Chrysler

China Automotive Systems (China Automotive) said that its first global OEM customer is Chrysler Grou

The company also announced the ground breaking for new Henglong Research and Development center.

According to the company, in November 2008, it received its first order from Chrysler to export power steering gears to its North America assembly facility. Since mid-2009, steering gears have been exported from China to US and installed in Jeep Wrangler model.

Chrysler has conducted an initial screen and review of China Automotive's R&D capacity, quality control and production capabilities as part of supplier development process. Both firms next created framework for their future joint development. China Automotive passed several product evaluations and road tests resulting in Chrysler accepting its power steering gears and issuing purchase order.

Hanlin Chen, chairman of China Automotive, said: "We are very excited about our strengthening relationship with Chrysler and the deep potential for the vast North American OEM market. Chrysler's order boosted our confidence to continue to develop and produce reliable power steering systems reaching the highest quality standards required by the world's most sophisticated auto manufacturers."

Additionally, China Automotive has also started production of its electronic power steering (EPS) system. It is currently supplying this EPS system at a rate of 2,000 units per month to Suzuki Auto in China.

Qizhou Wu, CEO of China Automotive, said: "We are also very pleased about the steady commercialization progress of our EPS products. Given the benefit of improving overall fuel efficiency, EPS systems are widely adopted by OEMs in Europe and gradually expanding market share in the U.S. OEM market. Although EPS systems are relatively new in China, we see great potential for EPS in China, the world's largest automotive market."