Volvo Buses and SAIC Form New JV
Volvo will invest RMB40m and SAIC RMB60m in the new company that will be named Shanghai Green Bus Drive System Company and will be based in Shanghai, China. For the past 10 years, Volvo and SAIC have together successfully operated the joint venture company Sunwin Bus, a city bus manufacturer in China.
The new company will concentrate on assembling new energy driveline systems and complete vehicle matching, prototype manufacturing and testing new energy driveline systems.
After securing approval from the relevant governmental authorities, a new facility will be constructed featuring a plant and offices for Shanghai Green Bus Drive System which is scheduled to be fully operational in the fourth quarter of 2011.
Accelerating the development of the strategic new energy vehicle industry is a top priority for the Chinese government.
SAIC Motors has decided on the technological roadmap for the development of new energy vehicles under the Chinese energy strategy. It aims to increase the use of electric vehicles and also fuel cell vehicles, while also supporting the industrialization of hybrid and pure-electric vehicles.
Volvo Buses has commenced serial production of its Volvo 7700 Hybrid and the double-decker Volvo B5L Hybrid buses. The company has received orders from major global bus operators.
Volvo has a long-term technological roadmap for the development of new energy vehicles for the world market. Near term development plan have a strong focus on various types of hybrid vehicles.
To realize these targets in partnership, the parties have agreed to establish the new joint venture company in China. The new company will act as the carrier for the new energy bus industrialization. Research and development projects within SAIC Motors and Volvo Buses regarding new energy driveline systems, will be industrialized in the new company.
Will the move benefit the firms?
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