Geely-funded Corun said to buy Toyota’s hybrid system core tech at RMB1

Shanghai (Gasgoo)- Hunan Corun New Energy Co.,Ltd (Corun), whose second biggest shareholder is Zhejiang Geely Holding Group, has reportedly bought the core technology of Toyota's THS (Toyota Hybrid System) for a value of merely RMB 1, according to a Chinese media outlet.

It is noteworthy that a Toyota's basis patent related to THS series-parallel hybrid power system was expired in February, 2017, which was no longer under legal protection, according to the China Automotive Industry Intellectual Property Development Report (2016). The patent expiration may somewhat boost the technology transaction between both parties, said some industrial insiders.

Geely Auto Group announced the "Blue Geely" Initiative in November 2015, saying it aims to increase its annual sales to 2 million units by 2020 and have NEVs make up over 90% of new car sales then. Some industrial people analyzed the automaker's current investment and sale planning and conjectured that 35% of the NEV sales goal could be completed by all-electric vehicles, while the balance of 65% should achieved by promoting hybrid vehicles.

Before launching the NEV initiative, Geely and Corun funded a joint venture dubbed ChinaHybrid System Co., Ltd (CHS Company) as early as 2014, with a business scope extending to cover the R&D, manufacture and marketing of hybrid powertrain, transmission system as well as battery packs.

Additionally, Corun also supplies Toyota with power batteries, making it one of component providers in China who know the Japanese automaker's hybrid power technology best. Injecting capital in Corun is a beneficial effort for Geely forming partnership with Toyota. Dong Changzheng, vice general manager of Toyota Motor (China) Investment Co., Ltd., revealed in November last year that Toyota was cooperating with Geely to popularize hybrid power technology via Corun.