Fras-le and Federal-Mogul Motorparts recently announced that they have entered into a definitive joint venture agreement as of December 10, 2016. Under terms of the agreement, subjected to the regulatory approvals, the companies intend to form a strategic partnership to provide premium braking products and better serve original equipment vehicle manufacturers and aftermarket customers in the light vehicle markets in Brazil and throughout South America.
“We welcome the opportunity to partner with Fras-le in the manufacture and distribution of industry-leading braking products to our original equipment customers, while also providing the South America aftermarket with premium braking offerings primarily sold under the globally-recognized and respected Jurid and Ferodo brands,” said Miguel Garcia, Federal-Mogul Motorparts general manager in Latin America.
“This strategic partnership leverages Federal-Mogul Motorparts’ technology leadership in the manufacture of premium braking products and Fras-le’s distribution network in Brazil,” said Paulo Ivan Barbosa Gomes, Fras-le’s aftermarket sales director. “We see this partnership as a significant step forward in our ability to meet the emerging needs of our customers, particularly in the light vehicle segment, throughout South America.”
The joint venture will be based in Sorocaba, São Paulo, Brazil, and operate under the name Jurid Do Brasil Sistemas Automotivos LTDA. Products sold through the joint venture will be manufactured at the Sorocaba plant or supplied from other Federal-Mogul Motorparts' facilities outside the region and distributed through Fras-le’s distribution network throughout the region. Fras-le will provide complementary existing manufacturing technologies and engineering / test facilities through its operations in Caxias do Sul.
The agreement is currently under review by and subject to the approval of all required authorities.
