International News

Search Autoparts/Aftermarket-business/International-news/

Standard Motor Products forms joint venture with Foshan Guangdong Automotive Air Conditioning

Friday, December 1, 2017 - 09:00
Print Article

Standard Motor Products announced today that it has formed a joint venture with Foshan Guangdong Automotive Air Conditioning Co., Ltd. (FGD), a China-based manufacturer of air conditioning compressors for the automotive aftermarket and the Chinese Original Equipment market.

Want more? Enjoy a free subscription to Aftermarket Business World magazine to get the latest news in the Automotive Aftermarket Industry. Click here to start your subscription today.

Standard Motor Products will invest approximately $12.5 million in the 50/50 joint venture. The new company is named Foshan FGD SMP Automotive Compressor Co. LTD.

Eric P. Sills, Standard Motor Products’ Chief Executive Officer and President, said, “We are very pleased to announce the formation of the FGD joint venture. FGD has been an excellent supplier to us of air conditioning compressors for several years. Additionally, they have begun making inroads with Chinese vehicle manufacturers.

“We believe that this transaction will enhance our position as a basic low-cost manufacturer and a leading supplier of temperature control parts to the aftermarket, as well as provide SMP with growth opportunities in the rapidly expanding China market. We welcome FGD into the Standard family. We believe the transaction will be accretive to earnings in year one, excluding one-time integration costs.”

Subscribe to Aftermarket Business World and receive articles like this every month….absolutely free. Click here.

Article Categorization
Article Details

< Previous
Next >
blog comments powered by Disqus