Shanghai (ZXZC)- HUAYU Automotive Systems Co., Ltd. (HASCO), a Chinese auto component maker, announced in recent days that it plans to sell its 50 stake in Shanghai TRW Automotive Safety Systems Co., Ltd. (Shanghai TRW) to TRW Asia Pacific Co.,Ltd (TRW Asia), a wholly-owned subsidiary of the U.S.-based TRW Automotive, with a value of RMB80.71 million.

Established in April 1997, Shanghai TRW Automotive Safety Systems Co., Ltd. is a joint venture founded by TRW Automotive China Holdings Ltd. and HASCO in China. It is responsible for producing SBS, IRS, SWS and related parts.

TRW Automotive is an American global supplier of automotive systems, modules, and components to automotive original equipment manufacturers (OEMs) and related aftermarkets. In 2015, it was acquired by German ZF Friedrichshafen.

As one of SAIC Motor's subsidiaries, HASCO works on providing such auto parts as automotive interior, seats and other related functional accessories for its parent company. It noted in the latest announcement that transferring 50% stake in Shanghai TRW is about to quickly form the ability of independent R&D, manufacture, production and market development in automotive safety belt, air bag and steering wheel areas by efficiently integrating relevant technologies and corporate resources, so as to offer superior products and services to vehicle users.

An executive of HASCO told local media that the company aims to focus on developing its own automotive safety system business, thus it opts to abandon the joint venture business.

Meanwhile, HASCO will also acquire the 50% stake in Shanghai Sachs Powertrain Components Systems Co., Ltd. (Sachs Powertrain) which is controlled by ZF (China) Investment Co., Ltd. at a price of RMB65.16 million, the company said on the same day.

Established in January 2002, Sachs Powertrain is a joint venture founded by ZF (China) Investment Co., Ltd. and HUAYU Automotive Systems Co., Ltd. in China. It is responsible for development, production and sales of torque converters and clutches for passenger car powertrains, serving such OEMs as SAIC Volkswagen, SAIC-GM, SAIC Motor PV, SAIC-GM-Wuling, FAW-Volkswagen, Changan Ford, Geely Auto, Jiangling Motors and Great Wall Motor, etc.

HASCO said it will support Sachs Powertrain in the self-development of transmission system module business after the stake acquisition completes. The powertrain subsidiary will still retain its existing clutch business and the advantage in automotive supporting devices and aftermarket services, whilst independently developing the CVT-used torque converters, dual mass flywheels and hybrid modules.