China Automotive Systems Inc., a Chinese supplier of steering wheel products, says it wants to increase its stake in Henglong Automotive Parts Co. from the current 44.5 percent to 81 percent. The deal could close in the first quarter of 2008, China Automotive said today in a statement.
The companies have started negotiations, but no agreement has been made.
Henglong reported net income of $9.75 million on sales of $54.5 million in 2006, according to China Automotive.
Henglongs main customers include Chery Automobile Co. Ltd., BYD Auto, Geely Automobile and FAW-Volkswagen.
China Automotive Systems is based in Hubei Province, China. Its customers include China FAW Group Corp., Dongfeng Auto Group Co. Ltd., Brilliance China Automotive Holdings Ltd., Beiqi Foton Motor Co. Ltd. and Chery Automobile.