China Buys Auto Parts Makers

Chinese companies started talking a decade ago about cracking the U.S. auto market with an array of low-cost passenger vehicles. That hasn’t happened, so instead they’re getting under the hoods of American cars by buying up parts makers at a record pace.

Ningbo Joyson Electronic Corp. supplies windshield-washer and ventilation systems to some of the world’s biggest carmakers, including Ford Motor Co., General Motors Co. and Volkswagen AG. Last year, it spent more than $1 billion buying a Michigan maker of air bags and an Indiana manufacturer of assembly-line equipment.

Now, it’s on track for potentially the biggest deal yet -- using a subsidiary to bid for beleaguered air-bag maker Takata Corp. and further entrench itself in chassis sold to U.S. drivers. The deal would continue an aggressive strategy that put Ningbo Joyson at the forefront of a record $1.6 billion in investments by Chinese parts makers last year seeking supply-chain access in the U.S. to compensate for a maturing home market.