(Yicai Global) Feb. 3 -- Shares in Ningbo Jifeng Auto Parts advanced to a six-month high today before retreating as investors cashed in after the Chinese automotive seating components manufacturer said it has become a designated supplier to German auto giant Audi in a deal worth up to CNY10 billion (USD1.5 billion) over seven years.

Jifeng’s stock price [SHA:603997] was trading down 5.5 percent at CNY16.08 (USD2.38) as of 1.10 p.m. China time today. Earlier in the day it surged 3.4 percent to CNY17.60, the highest since August last year. The stock has gained 14 percent in value over the past week.

Unit Grammer Interior (Shanghai) will develop and produce front and rear seat assembly products for Audi’s electric eQ5, eQ6 and E6 models, the Ningbo, southeastern Zhejiang province-based parent firm said yesterday. The collaboration will run for seven years starting from December next year.

Grammer Interior is a subsidiary of German passenger vehicle interiors supplier Grammer, which Jifeng acquired in 2019. The tie-up with Ingolstadt-based Audi is proof that Jifeng has succeeded in integrating its business with its German unit, it said.

At the time of the takeover, Jifeng said that the acquisition will help the company win over more top automakers as clients. This appears to be the case as Audi is the first conventional luxury vehicle maker to order Jifeng's NEV seat systems, it said. The project will improve and diversify Jifeng’s customer base in the car seat field.

Editor: Kim Taylor