19 June 2009
 

Dongfeng

Dongfeng Motor Corporation to validate Detroit Electric technology

Autozine
19 June 2009 | Dongfeng Motor Corporation and Detroit Electric Holdings Ltd have announced that they have agreed to jointly research, develop, market and sell Pure Electric Vehicles (PEVs) in China, based on Detroit Electric's advanced electric drive technology. A joint statement released yesterday said Dongfeng Motor Corporation will test and validate Detroit Electric's patented electric drive technology with the intention to produce and market Dongfeng's Pure Electric Vehicles.
Info

"In order to accelerate the adoption of Detroit Electric's electric drive technology and propel the PEV industry forward, Detroit Electric and Dongfeng will enter into discussions to form a joint venture company to manufacture, assemble, produce and supply the electric drive technology to Dongfeng group and other vehicle manufacturers", the statement said.

In addition, the statement said the two companies will study and explore the market entry strategy for the Dongfeng-Detroit Electric brand.

Meantime, Detroit Electric Chairman and CEO, Albert Lam, said: "Dongfeng is a world-class automaker with the market share and technical expertise needed to quickly bring PEVs to China. Their validation is a major proof point for the technical leadership and commercial readiness of our electric motor drive technology". He said the test and validation period will be concluded this October, and that the licensing agreement would include the motor drive and its controller, battery packs, battery controller, and other integration software and hardware.

Lam said Dongfeng had conducted a global review of available technology to power its PEVs, and decided to validate Detroit Electric's system because of its technological advancement.

Lam said Detroit Electric's discussions to form a joint venture company with Dongfeng, to manufacture, assemble, produce and supply its system to Dongfeng group and other vehicle manufacturers in that country 'will propel the electric vehicle industry forward within China'.

In March, Detroit Electric signed Strategic Licensing and Contract Assembly Agreements with Malaysia's Perusahaan Otomobil Nasional Sdn Bhd (Proton) to mass produce pure electric vehicles based on two of Proton's vehicle platforms and Detroit Electric's patented electric drive systems.

Detroit Electric targets to sell 45,000 of these vehicles across Europe, the US and Asia by next year; increasing to 270,000 by 2012.

Lam said: "Proton will also benefit from our deal with Dongfeng, as Detroit Electric badged vehicles based on Proton vehicle platforms will be distributed in China through Dongfeng's extensive network of 400 domestic dealers. This will indirectly open up another sales channel in the China market for Proton". He pointed out that China is committed to alternative clean vehicles. And with financial and other incentives to encourage the adoption of zero emission vehicles, the country will become one of the most important markets for Detroit Electric to realize its growth over the next five years.

Stressing that China had at least temporarily surpassed the US as the world's largest auto market, with sales of 1.11 million vehicles in March, Lam said the Chinese government is strongly encouraging the development of electric and hybrid vehicles as a way to address the substantial air pollution problem in urban areas.

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