Shanghai, June 19 (Gasgoo.com) China's third-largest automaker Dongfeng Motor Group Co. has announced that it will partner with Detroit Electric Holdings Ltd. to develop and sell battery-powered cars in China, Bloomberg reported today.
According to a statement by Hong Kong-based Detroit Electric, Dongfeng Motor will test and validate Detroit Electric's electric-drive systems. The two companies are likely to form a joint venture to build and supply an electric-drive system to the Dongfeng Group and other carmakers.
Financial details of the deal "are not immediately available due to a non-disclosure period for the agreement," said Sean McCabe, a spokesman for Detroit Electric.
The Chinese government has been urging its carmakers to develop alternative-energy vehicles to curb oil imports, cut carbon emissions and create a globally competitive auto industry. BYD Co., China's biggest rechargeable-battery maker, began selling electric cars last year.
Detroit Electric in March signed a licensing and assembly agreement (valued at $331 million annually) with Malaysia's state-owned automaker Proton Holdings Bhd.
