Motorcar Parts of America, a Torrance company that sells refurbished car alternators and starters, has invested $1.9 million in Fenwick Automotive Products, a manufacturer of steering, brake and clutch components.

The investment is a secured loan with the option to acquire “a substantial ownership” in Toronto-based Fenwick, according to Motorcar Parts. An ownership stake would more than double Motorcar Parts’ annual revenue, which hit $151 million last year.

Both companies sell car parts to retail chain stores and after-market manufacturers, but their product lines don’t overlap.

“This transaction represents a potential opportunity to expand beyond Motorcar Parts of America’s alternator and starter business and leverage our company’s existing manufacturing expertise and distribution channels with a broad array of automotive products,” said Motorcar Parts Chief Executive Selwyn Joffe in a statement.

Shares of Motorcar Parts gained 23 cents, or 3 percent, to close at $7.09 on the Nasdaq after Monday’s announcement.