China Automotive Systems (CAAS) has started producing steering gears for Fiat Chrysler Automobiles, the company announced in a press release on 16 November. The company is supplying the steering gears for electric power steering (EPS) systems that will be equipped in FCA’s new compact sport utility vehicle (SUV) model set to launch in 2017. The gears are being manufactured at its plant in Jingzhou, Hubei Province (China), and the shipping of the component too has started.
"We have been in Chrysler's global sourcing program since 2009. In the past seven years, as a key tier-1 supplier, we have won a number of accolades for our superior quality and outstanding performance in Chrysler's award winning models,” said Qizhou Wu, CEO of CAAS. “We remain upbeat with the prospects of our EPS business at home and abroad.”
Significance: Apart from the local market, CAAS has been focusing on North American market for some time now. The company has been supplying steering gears for various Chrysler vehicles since 2008 and can be also be found in various Ram models. Wu announced that its order book from North America is now over 500,000 annually. The company is one of the main suppliers of power steering systems and components for the automotive industry in China. The company supplies to local automakers such as Zhejiang Geely Automobile, FAW Group, Dongfeng Auto, Cherry and Shenyang Brilliance Jinbei.
CAAS recently announced growth in its third quarter net income, which it attributed to increase in EPS and hydraulic steering products sales. The company said it is continuing with its global focus and also increased its revenue guidance for the full year 2016 to USD450 million, up from previous forecast of USD430 million.
