Brose inks the deal on Dec 11, 2023 with Hasco to extend their joint venture in Shanghai. [Photo provided to chinadaily.com.cn]
German auto parts supplier Brose extended its joint venture on Monday with China's Hasco for another 25 years, showing its confidence in the Chinese vehicle market.
"I am delighted to see the success story of our cooperation with Hasco continues and that we will further work with our partner to enhance the competence of the joint venture as our business evolves," said Philipp Schramm, CEO and CFO of Brose.
Hasco is a Shanghai-listed company, with SAIC Motor holding a 58.32 percent stake.
In 1999, Hasco and Brose established their joint venture, Shanghai Brose Automotive Components, with Brose holding a 60 percent stake.
Based in Shanghai, the joint venture has produced about 88 million products for well-known Chinese and international car manufacturers over the past years.
Today, around 320 employees at the company develop and manufacture door modules, window regulators, seat structures, cooling fan modules and latches.
Brose said the extension of the joint venture will help strengthen its market presence and creating the basis for a reliable collaboration to meet the challenges and seize the opportunities in China's automotive market.
The two companies said they will pool their resources to help the joint venture further enhance its development and innovation strengths, continue to expand its existing product range and customer base in China, the world's largest vehicle market.
Vehicle sales are expected to hit 30 million units this year, according to the China Association of Automobile Manufacturers.