Eaton Corp. and Shaanxi Fast Gear (SFGW), announced the signing of a second joint venture agreement, this one to manufacture manual transmissions for light-duty commercial vehicles. SFGW, headquartered in Xi’an, China, will own a 51 percent interest in the new venture while Eaton will own a 49 percent.
The JV will develop, manufacture, sell, and service manual transmissions for the light-duty truck market in China and will also sell its products throughout the rest of Asia-Pacific, Eastern Europe, and Africa.
The new joint venture will be based in the High Tech Zone of Baoji City, Shaanxi Province, China. The venture is subject to regulatory approvals and customary closing conditions.
Eaton and SFGW are currently partners in another joint venture, Fast Eaton Clutch that develops, manufactures, and services clutches and associated clutch components in China. Fast Eaton Clutch is also based in Xi’an.
“We are pleased to announce our new joint venture with SFGW,” said João Faria, president, Eaton Vehicle Group. “Eaton’s efficient transmission solutions, combined with SFGW’s infrastructure and current light-duty transmission portfolio, will strengthen our collective goal to help light-duty commercial vehicle OEMs meet increasing regulations for improved fuel economy and performance.”