The two companies will form a new entity, called Visteon Avtopribor Electronics, which will be based in Vladimir, the home town of the Russian partner. The new company will be manufacturing components for all carmaker present in Russia.
The joint venture will manufacture components based on Visteon's global cockpit electronics technology platforms. The products to exit the JV's production lines will include audio, infotainment, driver information and controls electronics.
The parts will be manufactured by local manufacturers for AVTOVAZ, GAZ and Sollers. The foreign carmakers present in the country are also targeted by the joint venture.
"Visteon Avtopribor Electronics offers Visteon immediate access to the domestic Russian market through one of our established and highly respected partners," said Steve Meszaros, Visteon product group president.
"Expanding into the important Russian market supports our strategy of offering our global customers fully localized products in markets where they are growing."
The financial aspects of the deal, including the required investments or the participation in the JV were not made public, but the separate size of each of the companies involved is likely to turn the joint venture into Russia's largest automotive electronics supplier.
“Establishment of the new joint venture will allow us to offer world-class products to Russian customers and gives Avtopribor an opportunity to focus on other competitive products," said Alexey Melnikov, Avtopribor general director.
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