(Yicai Global) Nov. 12 -- China's Bethel Automotive Safety Systems has penned a CNY1.8 billion (USD257 million) deal to supply parts to American carmaker General Motors.

The seven-year contract with GM subsidiaries will add about CNY400 million to Bethel's 2020 revenue, the Anhui province-based firm said in a statement yesterday. It will send its aluminum brackets, steering knuckles and fork arms, among other products, to eight factories GM runs in the US, Canada and Mexico.

Bethel became a tier-one GM supplier when it penned its first contract with the auto giant's Mexico unit earlier this year, which had added CNY146 million (USD20.8 million) in revenue as of the end of the third quarter.

Under the latest deal, Bethel will start supplying parts this quarter until July 1, 2026. Some of the goods will be sent on fourth month delivery cycles while others will last the full seven years, equivalent to the lifecycle of the vehicles the parts are four, according to the statement. Bethel will handle logistics as and when GM needs the parts sending.

GM retains the rights to terminate the contract ahead of its expiry by giving 30 days' notice, as the parts would not be competitive in the States if the US government chooses to raise import tariffs on the related products, Bethel added.

Editor: James Boynton