Guangzhou Auto, Yuchai sign strategic co-op deal

Shanghai, June 12 (Gasgoo.com) Guangzhou Automobile Group Co. and Guangxi Yuchai Machinery Co., Ltd, China's leading diesel engine manufacturer, officially signed a strategic cooperation framework on June 10, xinhuanet.com reported. The deal is expected to promote each other's long-term development.

Based on their cooperation in the past 20 years, Guangzhou Auto and Guangxi Yuchai are determined to cement their strategic partnership for future development in both the passenger vehicle and commercial vehicle fields. They will share their resources and help boost each other's technological innovation and market exploration.

The cooperation will focus on the auto powertrain and auto-parts for buses, hybrids and other alternative vehicles. The two companies will work together for light commercial vehicles and medium-heavy commercial vehicles. They will also jointly develop new products and build sales networks.

After experiencing Yuchai's urban hybrid bus model sample in late February, Guangzhou Auto vice president Jiang Ping said this vehicle's powertrain and fuel efficiency are distinctive sales points, and hoped that Guangzhou Auto can have long-term strategic cooperation with Yuchai.

The Yuchai urban hybrid bus model is powered by the diesel engine and electricity. The hybrid powertrain can reduce fuel consumption by 20%. In May 2008, Yuchai received the first batch of orders for this hybrid model and started its production.

Guangzhou Auto has two commercial vehicle companies, with one making buses. Both companies hope for cooperation with Yulin in other aspects than the project of providing vehicles for the 16th Asian Games to be held in Guangzhou in 2010.