Hyundai unit wins $748 mln deal to provide engines to Chinese company
SEOUL, AJU - Hyundai Wia, a parts-making unit of South Korea's Hyundai auto group, has secured a $748 million deal to sell gasoline engines for China's GAC Changfeng Motor. It became the first South Korean auto parts maker to provide engines to a foreign company.
Hyundai Wia said Monday that its subsidiary in Rizhao, Shandong, signed a deal worth 840 billion won ($748 million) to provide GDI 2.0 turbocharged gasoline engines for a total of 300,000 Changfeng SUVs for five years, starting in August next year.
Gasoline direct injection (GDI) is a form of fuel injection, which has seen rapidly adopted by the automotive industry.
Changfeng, based in Changsha, Hunan, produces mainly light trucks. Hyundai Wia said it expects more orders for parts and exhaust after-treatment parts. The South Korean company has offered to provide 4WD (four wheel drive) parts in a package deal with the Chinese auto company.