More Chinese carmakers buying into foreign technology. This time, Dongfeng Motor Corp has acquired a 70% interest in T Engineering AB, formerly a unit of Saab Automobile Powertrain AB.
The state-owned Chinese company did not disclose the value of the deal, but under the agreement signed with T Engineering last week, Dongfeng will purchase the remaining 30% stake in the Swedish company within two years.
T Engineering, located in Trollhattan, Sweden, develops control systems for combustion engines, hybrid powertrains and electric vehicles. The company employs 32 engineers.
Dongfeng, based in the central Chinese city of Wuhan, is a major truck maker in its home market. It started building cars three years ago and has passenger vehicle joint ventures with Nissan, Honda, PSA Peugeot Citroen and Kia.