Chinese Hybrid Production Gears Up With Joint Venture

Chinese automaker SAIC Motor is planning to build hybrid-electric vehicles. The company will form a joint-venture with its state-owned parent company Shanghai Automotive Industry Corp (SAIC) to build hybrid vehicles. The new joint venture will be known as Shanghai Jieneng Automotive Technology and will be 90-percent owned by SAIC and 10 percent owned by SAIC Motor.

Neither company has indicated whether vehicles will be exported overseas, but published reports indicate that SAIC is interested in acquiring General Motors or Chrysler as a possible distribution avenue into the US car market. SAIC already has a hybrid joint venture in place with General Motors, the first product of which entered production in China in January 2008. The two companies have also paired to produce conventional vehicles for sale in the Chinese market since 1997. SAIC has also said that it is planning a fuel-cell vehicle for domestic sale sometime after 2010.

Nissan plans to develop an all-electric vehicle for the Chinese market, and would like to begin sales there by 2012. While Nissan is working with other countries to develop the recharging infrastructure needed to support electric vehicles. BYD, a Chinese automotive and auto battery manufacturer, is expected to begin production of electric cars in 2009 and will begin selling its products in Europe in 2010.