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Magna, Chongqing Xingqiaorui Automotive to form joint venture

JV to supply body and chassis components to Chinese market.


Magna International Inc and Chongqing Xingqiaorui Automotive Form Joint Venture

Transaction is expected to close in late 2015 or early 2016. PHOTO: MAGNA INTERNATIONAL

SHANGHAI, China — Magna International Inc. and Chongqing Xingqiaorui have agreed to form a strategic joint venture in China to supply body and chassis components to Chinese market.

Under the terms of the agreement, Cosma International, Magna’s body and chassis operating unit, will hold a 53% stake, while Xingqiaorui will hold the remaining 47%.

The transaction is expected to close in late 2015 or early 2016, subject to regulatory approvals.

Xingqiaorui, a Tier 1 supplier of automotive body-in-white components and a key supplier to Changan Ford, brings its three China manufacturing facilities (two in Chongqing and one in Hangzhou) to the deal. Magna is adding its new Chongqing manufacturing facility.

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