Geely Automobile, one of China's largest independent carmakers, said it signed a deal on March 27 to acquire auto parts manufacturer Drivetran Systems.
Geely said that the deal would help expand its product line and improve its capability to develop and produce gearboxes -- a key technology that Chinese automakers need to develop to be globally competitive.
Drivetrain Systems, is a supplier to auto giants including Ford Motor and Chrysler.
Geely did not provide any financial details of the deal, only saying that it had the support of both the Australian and Chinese governments. Drivetran Systems had filed for bankruptcy protection in February after "some of its clients were severely impacted by the financial crisis," Geely said.
The Australian company, which can produce up to 180,000 automatic transmissions per year, will continue to supply the international market while its products and technology will also be brought into China.
Copyright Agence France-Presse, 2009