Geely to begin new energy vehicle production in Shanxi next year

Gasgoo.com (Shanghai January 21) - At yesterday's Jinzhong Municipal People's Congress, Jinzhong Mayor Zhang Pu announced that the city government has signed an agreement with Geely Holding Group on a program to produce 15,000 new energy vehicles in 2011.

'Mr. Zhang said that the city has prepared to invest a total of 303.4 billion yuan ($46.13b) in the 490-point program, with 56 billion yuan ($8.51b) to be invested this year. In addition to new energy vehicle development, the program will focus on engine research and development. The program will take a prominent role among Shanxi province's new energy plans.

During last week's provincial development and reform conference, Li Baoqing, the head of the Shanxi Development and Reform Commission, stated that the province would vigorously pursue the new energy vehicles program this year, while at the same time continuing to develop the electric car industry. To this end, the city is currently cooperating with the Shanxi Coal Transportation and Sales Group to help create the necessary technological foundation for the new program. Additionally, there are further electric car projects under discussion, Mr. Li said.

According to Mr. Zhang, Jinzhong possesses an advantage when it comes to methanol fuel. He continued to say that because of Geely's unceasing research and investment in new energy products, both the company and the city have mutual reasons to pursue this relationship.

Jinzhong city officials had begun discussions with Geely as early as February 2009, with negotiations progressing during the Shanghai Auto Show held in April of that year. Negotiations were reportedly not smooth as both parties disagreed on the logistics of the project. Both sides finally reached a conclusion in June, with Geely vice president Mao Yong making two inspection visits to Jinzhong. In the wake of completing its takeover of Volvo, Geely's president Yang Jian went to Jinzhong in February of last year to iron out any remaining issues.

When it finally manages to begin production in the program, Geely will without a doubt take its position as Shanxi's leading automobile enterprise.