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DENSO’s Chinese Motorcycle Component Production Company Enters Into Joint Venture

The new joint venture company, formed in June, is called GONGCHENG DENSO (CHONGQING) Co. Ltd. (GCDN). Production has already begun at two plants.

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KARIYA, Japan ― CHONGQING DENSO CO. Ltd. (CQD), DENSO Corp.’s motorcycle component production and sales base in China, and Kunshan Gongcheng Electric Equipment Co., Ltd., a motorcycle component manufacturing company in China, have integrated their businesses to form a new company. The new joint venture company, formed in June, is called GONGCHENG DENSO (CHONGQING) CO., LTD, (GCDN). Production has already begun at two plants.
 
“China has the world’s largest gasoline-powered motorcycle market and we look to increase our competitiveness in that market through this integration with Kunshan Gongcheng,” said Masahiko Miyaki, senior executive director of DENSO’s Powertrain Control Systems business group.
 
The former CQD will serve as GCDN’s headquarters and manufacturing plant in Chongqing, and the former Kunshan Gongcheng as the branch manufacturing plant in Kunshan. GCDN will continue to manufacture ignition systems for carburetor-equipped engines and add production of ignition systems for electrically controlled fuel-injected engines, which are expected to grow in the market as emission control regulations are tightened.

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