Eaton, FAW to produce transmissions for China

Eaton Corp has signed an agreement to form a joint venture with FAW Jiefang Automotive Co Ltd in Changchun, China, to produce a complete line of medium-duty transmissions for commercial vehicles and buses for the Chinese market.

FAW Jiefang Automotive Co is the commercial vehicle subsidiary of China First Auto Works Group Co (FAW). Eaton and FAW Jiefang will have equal ownership of the joint venture, which will be called FAW Eaton Transmission Co Ltd. Terms were not disclosed. The joint venture is expected to receive Chinese government approval.

This joint venture will produce transmissions in FAW's manufacturing facility in Changchun in the northeastern province of Jilin. The venture will invest in new and upgraded equipment to supply advanced transmission technologies for China's truck and bus markets.

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