Geely and Taiwan's Yulon team up for electric cars

Geely Automobile Holdings said it has teamed up with Taiwan's Yulon Motor Co to produce and sell electric cars in Taiwan.

The privately owned car maker will export semi-knocked down kits of its Panda compact sedan to Taiwan to be assembled into an electric car which will be sold under Yulon's Tobe brand, Geely said in a statement.

The electric car will be powered by lithium-ion batteries and will use Yulon's green technologies.

Analysts said the move reflected Geely's keen interest in advanced technology for new energy vehicles. The Taiwan market would serve as a stepping stone for Geely to speed up its global expansion.

Geely, which is bidding for Swedish brand Volvo, has been ramping up plans to go abroad as keen competition in the domestic market squeezes its profit. Its price competitive models are also in demand in global markets.

Liu Jinliang, vice president of Geely parent, Zhejiang Geely Holding Group Co, earlier said the car maker plans to distribute Panda in global markets such as East Asia through Yulon.

An official from Geely told Shanghai Daily yesterday that a gasoline-version of Geely Panda will also be available in Taiwan's market in 2010.

"Taiwan has the potential to be an export base for Geely in the future," he said during a media interview.

Besides cooperating with Yulon, Liu mentioned that Geely will continue to develop its own electric vehicles, according to media reports.