WABCO Holdings Inc. (NYSE: WBC) today announced the completion of a strategic partnership agreement to supply China National Heavy Truck Corporation (CNHTC), the largest producer of heavy duty trucks in China. WABCO's strategic agreement with CNHTC extends to 2016 and is worth several hundred million U.S. dollars in cumulative sales.
A supplier to CNHTC since 1997, WABCO will continue to provide air management products, braking systems including anti-lock braking, and transmission control products. Further increasing their partnership, WABCO will be CNHTC's sole supplier of automated manual transmission (AMT) systems through 2016. CNHTC is the world's first original equipment manufacturer to adopt WABCO's highly advanced modular AMT system in volume production.
"Over the past decade, WABCO has transformed from a European export company into a global organization that successfully adapts to the requirements of the Chinese market," said Cai Dong, CNHTC President. "WABCO's local management team also has the ability to rapidly align sourcing and manufacturing capabilities with market conditions in China, further enhancing the flexibility, cost effectiveness and value that WABCO offers CNHTC."
"We are proud to be chosen by China's largest truck maker as their long term partner in a highly competitive market," said Jacques Esculier, WABCO Chief Executive Officer. "Partnering with CNHTC confirms our strategy of pursuing technology leadership while globalizing our capabilities in engineering, sourcing and manufacturing. CNHTC also recognizes WABCO as a local manufacturer, focused on local customer needs and powerfully connected to the Chinese market."