Detroit Auto Parts Manufacturer in Joint Venture With Chinese State-Owned Enterprise - Global Trade Magazine
  January 6th, 2016 | Written by

Detroit Auto Parts Manufacturer in Joint Venture With Chinese State-Owned Enterprise

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  • Federal-Mogul Motorparts will be the preferred supplier to Chinese joint venture.
  • U.S.-China joint venture will distribute auto parts through a network of stores and outlets branded Motorcare.
  • Federal-Mogul CEO: Joint venture will build broader business channels and a platform for growth in China.

Federal-Mogul Motorparts and China Automotive Import and Export Co. Ltd. (CAIEC), a nationwide state-owned automotive distribution network, have formed a joint venture, Federal-Mogul CAIEC Automotive Technology Services (Beijing) Co., Ltd.

The combination will be focused on the automotive aftermarket vehicle repair business in China.  Federal-Mogul Motorparts will be the preferred supplier to the joint venture, providing its portfolio of automotive parts for distribution through a network of company-owned stores and outlets to be established by the joint venture under the brand name, Motorcare.

Federal-Mogul considers the move a strategic expansion of our automotive aftermarket business in the Asia-Pacific region. “We are pleased to partner with CAIEC to build broader business channels and a platform for growth in China,” said Dan Ninivaggi, CEO of Federal-Mogul Motorparts. “We believe this market will be highly receptive to the safety, quality and reliability provided by Federal-Mogul Motorparts’ premium-branded automotive parts.”

Federal-Mogul has been supplying independent service shops in the U.S. for over 100 years.

“We look forward to partnering with Federal-Mogul Motorparts, a global manufacturer and distributor of world-recognized automotive parts, to build on CAIEC’s established presence in China through Motorcare,” said Jianhong Yin, president and general manager of CAIEC. “This joint venture combines the strong brands, resources and strategic channels of both companies and significantly strengthens our ability to meet the automotive parts needs of the China market where the number and age of vehicles on the road is increasing and the number of vehicles and models continues to proliferate.”

“We look forward to a long and successful partnership with CAIEC as we grow the spirit of cooperation among our companies and firmly establish the Motorcare business throughout the strategically important China market,” said Keith Power, president for Asia-Pacific at Federal-Mogul Motorparts.

Federal-Mogul Holdings Corporation is a global supplier of products and services to the world’s manufacturers and servicers of vehicles and marine, rail, aerospace, power generation, and industrial equipment. Federal-Mogul was founded in Detroit in 1899 and maintains its worldwide headquarters in Southfield, Michigan. The company employs nearly 50,000 in 34 countries.

CAIEC, a subsidiary of SINOMACH (China National Machinery Industry Corporation), was founded in 1983, and is an international automobile trade company with headquarters in Beijing. CAIEC specializes in the domestic and foreign trade of automobiles and parts, as well as the export and import of mechanical and electrical equipment, textile products, agricultural byproducts, petroleum products, chemical materials and other products.


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