LEVALLOIS, FRANCE (July 11, 2 p.m. ET) — French automotive supplier Plastic Omnium Auto Inergy is creating a fuel systems manufacturing joint venture with Chinese car maker Beijing Automotive Industry Co., saying it would help it boost business with BAIC, Daimler AG's Mercedes-Benz and Hyundai Motor Co.
The joint venture, which will be 60 percent owned by Plastic Omnium and 40 percent by a BAIC subsidiary, will strengthen its business “by creating a cooperative relationship with BAIC and its partners Mercedes and Hyundai in China,” Plastic Omnium said in a July 11 announcement.
The French firm said it would contribute its existing Beijing factory to the JV. That factory currently makes fuel systems for Hyundai.
No other details of the joint venture, which is with BAIC's Beijing Hainachuan Automotive Parts Co. Ltd., were disclosed.
Plastic Omnium is a wholly-owned unit of Compagnie Plastic Omnium of Levallois, France.
BAIC sells its own branded cars, along with vehicles from its joint ventures with Mercedes and Hyundai.
Plastic Omnium has 12 plants in China for its two automotive businesses, exterior components and composites and fuel systems.