Dongfeng LogoThe Chinese auto industry has been on the lookout for high-tech auto companies in search of a partner, and China's Dongfeng may have found just that in transmission maker Getrag. Automotive News reports that Dongfeng is in advanced talks to purchase a 30-percent stake in the German supplier.

Details are scarce, but the report cites sources who say the deal could be worth $700 million. Getrag has reportedly been looking for a partner since Dana Corporation sold its 30-percent stake back to the Hagenmeyer family back in 2007. The family is currently the sole owner of Getrag.

AN points out that the merger, if it goes through, would represent the first time a Chinese automaker has bought into the German auto sector. It's important to point out that talks are reportedly ongoing, which means that either party can back out at any time. Many global automakers rely on Getrag for transmissions to one extent or another, including Ford, Fiat and BMW.

[Source: Automotive News sub. req.]