Shanghai September 16 (Gasgoo.com) Without government approval, the joint venture deal signed between Anhui Jianghuai Automobile Co., Ltd. (JAC) and Hybrid Kinetic Motors Corporation (HKMC) on making new energy vehicles in China may fall through, Beijing Youth Daily reported Thursday.
On Augst 3, 2010, JAC and Tianjin-based HKMC Equity Investment Fund Management Co., Ltd., a wholly-owned subsidiary of Hong Kong's Hybrid Kinetic Motors Corporation, signed a letter of intent to establish a joint venture in Heifei, Anhui, with an investment of no less than no less than 2 billion yuan ($295 million).
HKMC, owned by Brilliance China's former Chairman Yang Rong, has also ended its cooperation with FEV Engine Technology Inc., a German automotive supplier.
Relevant persons in charge at JAC used to persuade Zuo Yanan, President of the company, saying if JAC is truly in need of new energy technology, FEV can help develop it directly, there is thus no need to cooperate with HKMC, according to early reports.
HKMC announced its mid-year results in early September: During the period, the company lost 52.35 million HKD ($6.7 million), up 9.2% from 47.94 million HKD in the same period last year. The company's revenue totaled 6.99 million yuan, down 6.8% from a year earlier.
