China Automotive Systems has struck a deal with Changan Automobile Co to make electric steering units, the company said Monday.
Terms of the deal weren't disclosed. Changan is one of the largest automakers in China, with sales of 1.37 million vehicles in 2009.
The steering systems will be made by Wuhan Jielong Power Steering Co, a subsidiary of China Automotive Systems. China Automotive also supplies electronic steering units to Suzuki Motor Co.
Changan has been using China Automotive's hydraulic power steering systems for two years. It had been using the electric steering system on a trial basis.
Shares of China Automotive Systems Inc. fell 13 cents to $17.33 Monday.