Milan and Shanghai, August 3, 2011 / PRNewswire-FirstCall / - Magneti - Marelli (MagnetiMarelli) and China's leading auto parts maker universal cash flows the company has signed an agreement to set up a production in China automobile shock absorber joint venture.

    The two sides each hold 50% stake in the joint venture company is expected to be operational by the end of 2011.

    Production plant will be located in Hangzhou, near. The provincial capital Hangzhou, Zhejiang Province, with 900 million people, is an important industrial center of logistics, located 180 kilometers southwest of Shanghai. Universal Group in Shanghai have developed a strong footprint.

    Full-speed operation, the joint venture's production in the next three years will nearly double, from Universal's current production for the domestic customer shock absorber 3 million to 6 million, which will also cover business in China multinational car manufacturers.

    The joint venture strategy will focus on product design, manufacture and sale have "high-performance vibration characteristics", full displacement valve, damping characteristics according to location and frequency characteristics of new technologies, changes in relations between the "traditional" (or passive) damper and with a Magneti - Marelli electronic shock absorber system innovation in technology-related "smart" damper.

    Magneti - Marelli has brought to this area to provide efficient, active suspension control system of the "adaptive damping control" technology.

    Magneti - Marelli also used the name "two valve" dual-mode operation of the shock absorber technology was perfected. Two valve allows the driver to the high precision of driving comfort and switch between. The technology in small cars and sports cars to bring a "low cost" of the suspension control program.

    As China's auto parts leader, universal cash flows is a strategic industry partners, the company in the United States and the Americas on the importance of global markets are becoming increasingly prominent.

    Universal cash flows belong to Universal Group, which has 40,000 employees and 2010 revenues of $ 10 billion, across all areas of business (financial services, agricultural products, renewable energy and real estate, etc.). Lu Guanqiu Group Chairman of the Board is an industry and entrepreneurs in China in one of the most charismatic leaders, the 1969 opening of a small bicycle repair shop to fight the empire of an industry.

    Magneti - Marelli CEO EugenioRazelli said: "This agreement has a dual strategic importance, as it has done on behalf of our industrial distribution in China in 1996, we entered the Chinese market, this strategy now Magneti - Marelli core business areas in China has doubled in the same time, it also represents our global influence in the field of shock absorber has been further strengthened, Magneti - Marelli in the field have occupied a very competitive position. In addition to China, we also acquired the plant in the United States of Pulaski, Endurance in India and have established joint ventures, and in South America and Poland established a good momentum of development of the business, those business units active in the original equipment (OE) and aftermarket , shock absorber million pieces annual output up to 2800. "

    Magneti - Marelli China-Italy Chamber of Commerce recently awarded the "2010 China's market is the most efficient company in Italy," the honorary title. Last year, Magneti - Marelli's sales in China increased by more than 40% (2010 of 232 million euros in 2009 to 162 million euros), over strong growth (about 32%) of the automotive market.

    Into China in the first 15 years, Magneti - Marelli's business has been all over Shanghai (Headquarters and power systems, exhaust systems and lights department, as well as with the Shanghai Automobile Gear Factory founded in Jiading for Freechoice tiptronic of the transmission joint venture production of hydraulic components), Wuhu (lights and power systems) and Guangzhou (electronic system).