AFV Solutions in Joint Venture for MPV in China

28 November 2006

AFV Solutions (AFVS); BBF International Automobile Technology Company (BBF); and FAW-HONGTA Automobile Company, a car manufacturer in China and subsidiary of FAW Automobile Group have formed a joint venture company in China to cooperate on the potential development of a MPV based on the Renault Espace III chassis.

AFVS and BBF will initially work towards importing certain documentation and tooling from France to China. Following importing the documentation and tooling, AFVS, BBF and FAW-HONGTA will jointly determine the viability of the Espace III project. AFVS is a provider of alternative fuel (propane and compressed natural gas) and hybrid drive systems and conversions.

If the partners decided the project is viable, FAW-HONGTA will be the manufacturer of the vehicle. Manufacturing will take place on a 1,100 acre facility with an annual production capacity of up to 60,000 vehicles. FAW-Hongta has the license to manufacture vehicles, full equipment for stamping, welding, painting, and assembly, as well as components, purchasing, sales and after sales network.

Last week, AFV Solutions entered into an agreement with Baolong Group Company, Ltd., a Chinese multi-purpose vehicle manufacturer, jointly to market, sell, manufacture and/or assemble light- to heavy-duty hybrid vehicles. (Earlier post.)

FAW-HONGTA is a joint venture company with FAW Group (the best known automobile brand in China) and China Hongta Group in Yunnan. The company began light-weight automobile production in China in 1997 with an annual output capacity of 150,000 vehicles. The company has a platform for both commercial and passenger vehicles.

Their products encompass more than 600 models that include but aren’t limited to light and heavy-weight trucks, mini cars, MPVs (multi passenger vehicles), and SUVs. In addition to distributing their vehicles nationwide, FAW-Hongta has also been exporting to more than 10 other nations throughout Asia.