(Yicai Global) April 14 -- Chinese vehicle manufacturer Jinbei Automotive and American Lear's China unit will deepen collaboration to make car seats for a joint venture between Germany's BMW and China's Brilliance Auto Group.

Jinbei and Lear China Investment will form a joint venture to make high-end car seating with the proposed client of BMW Brilliance Automotive, the Shenyang-based carmaker said in a statement yesterday, without disclosing any financial details of the deal. The schedule will be agreed on later.

The deal may be motivated by a recent acquisition. On April 8, Jinbei hiked its stake in its joint venture with Adient Asia Holdings to full ownership by paying USD58 million. Jinbei Adient Auto Parts provides BMW Brilliance with passenger car seats.

The pair's ties have been strengthening over the past months. In February, Jinbei and Lear's China unit registered a 50:50 vehicle parts trading JV with a registered capital of CNY200,000 (USD30,586). 

But the links go farther. The firms have two car seat production bases in northeastern China's Shenyang. The factories employ 1,500 workers and can produce more than 1 million car seats a year.

However, also Jinbei and Brilliance Auto are connected. Huachen Automotive Group Holdings, the parent of both carmakers, is currently undergoing bankruptcy restructuring.

Jinbei's stock price [SHA:600609] was 0.4 percent up at CNY4.60 (70 US dollar cents) this afternoon.

Editor: Emmi Laine, Xiao Yi