Cheersson establishes joint venture with Pneuride on accelerating domestic air suspension system implementation

Workers assemble a car at Yudo New Energy Automobile, a large new energy auto manufacturer based in South China's Fujian province, on Dec 20, 2017. (Photo/Xinhua)

Suzhou Cheersson Precision Metal Forming Co., Ltd. (Cheersson) announced that the company plans to invest in the establishment of a joint venture with Pneuride to fully introduce the technology and production process of Pneuride's air suspension system and system component products in China, reported Xinhua-run China Securities Journal on Sunday.

It is learned the registered capital of the joint venture is 7.5 million pounds (around 64 million yuan). Pneuride intends to contribute 750,000 pounds (around 6.4 million yuan) in technical results for a 10 percent shareholding and 3,075,000 pounds (around 26.23million yuan) in money for a 41 percent shareholding, for a total of 51percent.

Cheersson said in an announcement that the move is to further deepen the company's strategic layout in the field of automotive system products, and improve the company's core competitiveness and sustainable profitability.

When the car is running at high speed, the air suspension can adjust the height of the car chassis, thus reducing wind resistance. On the other hand, new energy vehicles are generally heavier than fuel vehicles, air suspension can effectively balance the requirements of high load-bearing and comfort.