Magneti Marelli and SAIC Motor Corp. Ltd., through its Shanghai Automobile Gear Works subsidiary, have signed an agreement to establish a 50-50 joint venture for the production of hydraulic components in Magneti Marelli's Freechoice automated manual transmission. The components will be integrated with the electronic control unit. The joint venture will be located in the area of Shanghai and is set to be operational starting in the second half of 2009. At full speed, the new industrial entity will be able to produce components for about 350,000 gearboxes a year. Italy-based Magneti Marelli currently supplies navigation systems to SAIC for its Roewe brand of cars.