Federal-Mogul Motorparts and China Automotive Import and Export Co. Ltd. (CAIEC), a nationwide state-owned 4S automotive distribution network, today announced the formation of a joint venture, Federal-Mogul CAIEC Automotive Technology Services (Beijing) Co., Ltd., focused on automotive aftermarket vehicle repair business within China.
Federal-Mogul Motorparts will be the preferred supplier to the joint venture, providing its broad portfolio of premium-branded 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™. Additional terms of the transaction were not disclosed.
Commenting on the joint venture, Dan Ninivaggi, CEO of Federal-Mogul Motorparts, said, “In a strategic expansion of our automotive aftermarket business in Asia Pacific, Federal-Mogul Motorparts is pleased to partner with CAIEC to build broader business channels and a platform for growth in China ensuring quality vehicle repair and technical experience from our more than 100-year history to independent service shops through the opening of an extensive network of Motorcare stores serving the independent aftermarket. We believe this market will be highly receptive to the safety, quality and reliability provided by Federal-Mogul Motorparts’ premium-branded automotive parts.”
Said Jianhong Yin, Vice President of SINOMACH, President and General Manager of CAIEC, “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. 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, Asia Pacific, Federal-Mogul Motorparts.
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