BYD Automobile Co Ltd is expected to provide components to General Motors Corp and DaimlerChrysler's Chrysler units as overseas car makers increase sourcing from China to improve cost efficiency.
　　
The nation's leading private car maker has signed a contact with General Motors Corp, the world's biggest car maker, to make 100 million yuan (US$12.9 million) of interior components from this year, said Hao Fuchun, general manager of BYD's module unit.

"The contract is just a trial to break into the North American market." Hao said. "We will have more business with overseas car makers due to our inexpensive pricing." BYD is also in talks with Chrysler and Ford. BYD already supplies Nissan's subsidiary in the United States and Jaguar. Hao said the price of China-made components of the same quality is about two-thirds less than those made in Japan. China-made components account for about one-sixth of those in Europe and the US.

BYD plans to invest up to 400 million yuan to set up a second plant to make more advanced components to cope with growing demand. The new plant could double production capacity to 4,000 sets of modules for four complete cars every year. Overseas car makers, suffering from a decline in profit and sales, have streamlined operation costs. This includes sourcing more parts from China.

Ford Motor Corp said last year it will increase sourcing from China to US$2.6 billion from US$1.6 billion as part of a restructuring plan.

BYD, which also makes cell phone batteries, sold 63,153 vehicles last year, a jump of 600 percent from 2005.

Source:佚名