TRW Signs Preliminary Agreement to Expand Shanghai Joint Venture

    Business Editors & Automotive Writers

    DETROIT--Feb. 7, 2001--TRW announced today that it has reached a preliminary agreement with Shanghai Automotive Industrial Corp. (SAIC) and its Yanfeng subsidiary to produce air bags in the Shanghai area for vehicle makers in China. Terms were not disclosed. The parties expect to finalize the agreement later this year.
    "The preliminary agreement allows TRW, SAIC and Yanfeng, which has an existing steering wheel business, to work toward expanding our Shanghai TRW Automotive Safety Systems Co., Ltd. seat belt joint venture," said Dan Kinnavy, vice president of planning for Occupant Safety Systems at TRW. "The agreement will advance TRW's goal of providing integrated safety systems capabilities and advanced technology air bags, steering wheels and seat belts for the growing Chinese vehicle market."
    TRW first formed a joint venture in January 1997 to manufacture and sell seat belts in China through a joint venture with Shanghai Clutch Factory (SCF), also an SAIC subsidiary. Kinnavy said the business continues to grow steadily in sales and production volume, as the air bag and steering wheel business is expected to do. The joint venture with SCF currently supplies safety restraints to several vehicle makers in China.
    In the air bag business, TRW supplies the Volkswagen Jetta and Passat in China from European air bag plants and also has a new contract to supply local Chinese automaker Jinbei. Kinnavy said additional business from other automakers is expected. The preliminary agreement signed by TRW, SAIC and Yanfeng provides that the parties will eventually establish a separate manufacturing plant in the Shanghai area.