AC Propulsion signs electric vehicle drivetrain and battery pack supply contract with Beiqi Foton Motor
26 October 2011
AC Propulsion’s sister company e.motor Advance Corp. of Beijing (China) has entered into a supplier contract with Beiqi Foton Motor Co. of Beijing. The contract between the two companies provides that e.motor Advance will deliver 100 sets of its drivetrain and battery pack systems to Foton for their Midi-E electric car. The 100 Midi-E vehicles will be in service as taxis in the Yanqing area of Beijing in 2012.
AC Propulsion notes that this is the first deal where a US-based company will supply the major EV components for a China-built EV. AC Propulsion began work with Foton Motor in early 2010 developing an EV conversion using AC Propulsion’s advanced Drive and Recharge system, along with an AC Propulsion designed and built battery pack. e.motor Advance established a new facility last year located in Beijing’s Yizhuang economic zone and plans to start construction of a new manufacturing facility next year with a capacity to build 30,000 units per year. Sales are expected to reach this level within 3 years.
In 2005, AC Propulsion established a subsidiary manufacturing operation in Shanghai, which provided components used in the BMW Mini-E program. Present drivetrain production is a joint operation by AC Propulsion San Dimas, AC Propulsion Shanghai and e.motor Advance. San Dimas remains as the company's headquarters, engineering center, as well as limited production.
In other words, AC Propulsion just gave its IP to a Chinese competitor for next to nothing compared to its value.
Posted by: Engineer-Poet | 26 October 2011 at 08:36 AM
One has to go where the future markets will be. In the near future, China and India, with close to 3 billion people, will buy more electrified vehicles than USA + EU combined.
Many more USA + EU firms will do exactly (or have already done) what AC Propulsion is doing.
Go West young man may become go East young business man.
Posted by: HarveyD | 28 October 2011 at 07:27 AM