China and U.S. parts suppliers plan to form an alliance

According to "Automotive News China," China Automotive Component & Accessories Corporation (CAPAC) is expanding the technology center in the suburbs of Detroit, which is the first step in its plan to form an alliance with U.S. parts suppliers.

The state-owned group has gathered 100 suppliers and has invested 10 million US dollars to build an R&D center, which is shared with Tempo International Group, a Chinese manufacturer of chassis parts. The center already has 100 engineers, and China Auto Parts Industry Corporation also plans to recruit 100 engineers.

After speaking to business executives in the suburbs of Detroit, Chen Kangren, president of China Auto Parts Industries, said: "We hope to use it as a platform to collaborate with all other R&D centers in Detroit."

China Auto Parts Industry Corporation has global sales of 30 billion US dollars. Its main products are aftermarket parts. With annual sales of US$80 million in the United States, Chen Kangren said he hopes to achieve higher sales in the North American market and also hopes to cooperate with US suppliers to sell parts in China.

The company is building three industrial parks in China. Chen Kangren said that he hopes to discuss with U.S. companies that may operate in the park. Chen said that the company is evaluating about 10 U.S. companies that may have "some degree of cooperation" with CAPAC.

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