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Beijing West Industries Group has completed its purchase of Delphi's suspension and braking business. It's the largest overseas acquisition for China in the auto component sector.
Delphi is the world's largest producer of auto parts. It has five factories, four research centers and 14 customer service centers for their suspension and braking business. Their clients include top auto brands - BMW, Audi and Porsche among them. The annual revenue of the suspension and braking business is around 600 million U.S. dollars.
Fang Jianyi, Chairman of Beijing West Industries said "We've acquired more than 1 thousand patents and also a great many of the techniques, skills and standards in car chassis design and production. Most importantly, we've gained many more clients in Europe, America and Asia."
Last year, China's auto sales and production both exceeded 10 million vehicles. It's now become the world's top auto consumer. But in parts and core manufacturing technology, China is still lagging behind major auto manufacturing countries such as the U.S. and Germany.
With the acquisition, BWI takes ownership of not only Delphi's manufacturing plants, but its manufacturing, research and management teams. The move is a boost to BWI's efforts to transform into a world-class auto component supplier with its own core technology.