Chinese automaker Chery will set up a joint venture with the U.S.-based Fortune 500 company Johnson Controls to produce automotive interiors in China. The deal will also include a technology swap, a growing concern across the entire US manufacturing spectrum. Chery will acquire technical know-how from the American company in order to improve its auto parts supply system and make its vehicles more competitive in international markets. Chery has already made it’s intentions to produce cars and ship to the US and has had discussions with Daimler Chrysler.
Johnson Controls Inc. is the world’s leading supplier of automotive interior systems. Chery is one of the ten biggest automakers in China and one of the few Chinese companies that successfully produces its own models rather than manufacturing foreign brands under license.