Geely Holding Group, one of China's biggest private carmakers, said on Friday it has acquired Australian automatic transmission supplier Drivetrain Systems International (DSI), to boost its capability in automobile parts technologies.
The Zhejiang-based carmaker will introduce DSI's products and technologies in the domestic automobile market and help DSI look for low-cost parts sourcing opportunities in China, Geely said in a statement.
The deal would also provide funds to the ailing Australian company's development and research on new products to maintain its leading position in the global market.
Geely will retain the DSI brand and its independence to ensure services to global clients, the statement said.
However, the company did not disclose any financial figures and details about the transaction.
DSI, with more than 80 years of history, was OEM (original equipment manufacture) supplier for leading automakers like Ford, Chrysler and Ssangyong Motor. It has an annual capacity of 180,000 automatic transmission systems.
The Australian company, entered bankruptcy proceedings in February as the global industry downturn weighed on some of its clients, Geely said in the statement.
"It's an encouraging attempt by Chinese automakers," said Chen Wenkai, CEO of gasgoo.com. "Local producers like Geely can boost their development capability in core parts technologies through the acquisition."
Geely, should however, pay more attention to the sustainable development of DSI's technologies, he said. "Geely has to break through the bottlenecks of technology management and innovation capacity to make the acquired technologies their own."