Zhongxing to make sedan on Steve platform

Shanghai, December 26 (Gasgoo.com) After Chamco Auto (China American Cooperative Automotive Co.) and its subsidiary ZX Auto North America International got entangled in a bankruptcy case, two members from the Chamco directorship have moved to join Zhongxing Auto, sina.com said recently.

Zhongxing Auto, a manufacturer of pickup trucks and SUVs in northern China, will make sedans on the Steve platform developed by one of the Chamco directors.

According to a top executive of Hebei Zhongxing Auto, former Fiat N. America executive and Chamco CEO Mario Ferla has entered the Chinese pickup and SUV company as its chief financial officer (CFO), and Chamco's standard technology developer Steve Saleen is planning to have his company join hands with Zhongxing Auto, allowing the latter to build sedans on the Steve sport car platform.

Zhongxing Auto president Xiao Wei said that the company will first launch a sport car made by Steve rather than a sedan. Zhongxing will build passenger vehicles, including the CUV, SAV and MPV, on the Steve platform. These vehicles will perform better than Zhingxing's previous SUV models in that they will deliver greater speed and more purposes in addition to big power and big torque.

In the future, Zhongxing Auto will develop its own-brand sedan models to target the mid- and high-end auto markets. "Our sedans will not sell cheap," said Xiao.

ZX Auto North America International is a joint venture between Chamco Auto and Zhongxing Auto. In August, Zhongxing sent a letter to its lawsuit-entangled U.S. partner, asking for termination of their contract signed in January 2006, but Chamco responded that Zhongxing's decision to quit the deal failed to meet contractual requirements and was invalid.