Valeo takes over auto light unit of China's Chery
French auto component manufacturer Vale said Tuesday it had taken an 80 percent stake in Ruby, the lighting unit of Chinese automaker Chery Automobile.
The amount of the transaction was not disclosed.
Chery's subsidiary will keep a 20 percent in what will become a joint venture named Wuhu Valeo Automotive Lighting Systems, based in Wuhu in eastern Anhui province, Valeo said in a statement.
The joint venture will design, manufacture and sell Valeo lighting products, mainly for Chery Automobile on the Chinese market.
"This operation is in line with Valeos growth strategy in China and Asia, which represented 25 percent of our original equipment sales in the third quarter of 2011..." Valeo chief executive Jacques Aschenbroich was quoted as saying.
Known for its low-cost vehicles, Chery became the top Chinese automaker in August 2007, 10 years after it began operations, and now manufactures some 700,000 cars per year.
© 2012 AFP