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China Yuchai in Joint Ventures with Geely and Yinlun for 2.0L, Euro-5 Diesel Passenger Car Engine
25 February 2008
China Yuchai International Limited, the leading manufacturer and distributor of diesel engines in China, has entered into an Equity Joint Venture (JV) Agreement with Zhejiang Geely Holding Group Co., Ltd. (Geely) and Zhejiang Yinlun Machinery Co, Limited (Yinlun), to form two joint venture companies in Tiantai, Zhejiang Province and Jining, Shandong Province.
The joint venture companies will be primarily engaged in the development, production and sales of a proprietary 2.0-liter diesel engine and its parts for passenger vehicles. Geely will develop the first generation prototype of the diesel engine and will purchase all its requirements from the JV companies, provided the conditions of quality, price and production capacity are met.
The JV companies in turn will purchase the engine and the technology from Geely, subject to certain specified design technology standards being met. The JV companies will be responsible for the continued development of the engine technology and diesel engine and subsequent commercialization, including Euro-5 certification to meet China’s evolving emission standards.
The total design production capacity of both JV companies will be 300,000 diesel units, with each joint venture company starting with a capacity for 50,000 diesel engine units and then adding capacity to reach 150,000 units annually.
Yuchai will be the controlling shareholder with 52% in both JV companies and is responsible for their establishment, construction of production facilities and provision of engine parts. Geely and Yinlun, with a 30% and 18% shareholding respectively, are responsible for procuring all basic supplies and local government support for the projects.
In the first 11 months of 2007, Geely was ranked as the 8th largest automaker in China with nearly 200,000 cars sold. During this period, total number of passenger vehicles powered by 1.6L to 2.0L engine sold in the entire China market reached approximately 1.4 million units, reflecting 58% year-over-year growth.
February 25, 2008 in China, Diesel | Permalink | Comments (1) | TrackBack (0)
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Comments
A bit off topic, but GM is promoting the E-Flex in China. If they have to build one coal plant every week to keep up with electric demand, I am not sure that having PHEV cars is a good idea right now.
http://en.ce.cn/Insight/200802/26/t20080226_14643381.shtml
Posted by: sjc | Feb 26, 2008 10:56:22 AM
