New businesses

- In February 2006, the Company announced that its joint-venture company with Lear, Shanghai Lear STEC Automotive Parts Co., Ltd., had started delivering remote control door lock transmitters for the Buick LaCrosse produced by Shanghai GM.

- In March 2006, the Company announced that its joint-venture company with Delphi, Shanghai Delphi Automotive Door System Co., Ltd., had obtained the door-lock business for the Excelle manufactured by Shanghai GM.

- In March 2006, Shanghai ArvenMeritor Automotive Parts Co., Ltd., was designated as the sunroof supplier of GM's Epsilon project in China and Korea. GM plans to use the Epsilon platform in more than 10 new models including the new Buick and the new Chevrolet made by Shanghai GM. The development project will be carried out simultaneously in North America, Europe, and the Asia-Pacific region. Shanghai ArvenMeritor Automotive Parts expects annual sales of more than 1 million yuan from the sunroof contract alone.

- In September 2006, Shanghai Delphi Automotive Door System Co., Ltd., its joint venture with Delphi, won a contract to supply door systems for two passenger models made by VW of Germany. The business is worth some 300 million yuan.

- The Company announced that its two utility model patents on DC motors were certified by the State Intellectual Property Office. These two patents cover improvements in wear resistance and sealing performance. They are expected to contribute to promoting localization of technology in the country since China has so far been relying on foreign technology.