Volvo Buses and SAIC Motors form joint company for new energy driveline systems

 

Volvo Buses and SAIC Motors form joint company for new energy driveline
systems

Volvo Buses and Chinese SAIC Motors have agreed to form a new joint
venture company. It is a company for driveline systems for new energy
buses such as hybrids and electric buses. The new company will be owned
by SAIC with 60% and by Volvo with 40%.

Volvo will invest 40M RMB and SAIC 60M RMB in the new company that will
be named Shanghai Green Bus Drive System Co. and will be based in
Shanghai, China, For the past 10 years, Volvo and SAIC have together
successfully operated the joint venture company Sunwin Bus, one of the
largest city bus manufacturers in China.

After securing approval from the relevant governmental authorities, a
new facility will be constructed featuring a plant and offices for
Shanghai Green Bus Drive System Co which is scheduled to be fully
operational in the fourth quarter of 2011.

Accelerating the development of the strategic new energy vehicle
industry is a top priority for the Chinese government. The government
wants to develop a sustainable automotive industry and facilitate
strategic leaps into the future for the Chinese auto industry. It aims
to form a new energy vehicle industry chain, and to build industrial
bases in a number of cities including Shanghai.

Today, Chinese companies are already at the cutting edge in new energy
buses. The World Expo in Shanghai successfully demonstrated the
commercial operation of new energy vehicles on the largest global scale
to date, featuring more than 1,000 new energy vehicles (pure electric,
hybrids and fuel cell vehicles).

They were mainly based on SAIC Motors' technology and fulfilled the aim
of zero emission inside the expo park. Sunwin Bus delivered a total of
332 new energy buses, which provided flawless service at the Expo.

SAIC Motors has decided on the technological roadmap for the development
of new energy vehicles under the Chinese energy strategy. It aims to
increase the use of electric vehicles and later also fuel cell vehicles,
while also supporting the industrialization of hybrid and pure-electric
vehicles.

Volvo Buses has commenced serial production of its Volvo 7700 Hybrid and
the double-decker Volvo B5L Hybrid buses. To date, the company has
received orders from major global bus operators.  The reports from
customers are very positive. Hybrid bus availability is equally as high
as the level for diesel buses, and in terms of fuel consumption it is
very clear that Volvo has the most fuel-efficient hybrid solution in the
world.

Volvo has a long-term technological roadmap for the development of new
energy vehicles for the world market.  Near term development plan have a
strong focus on various types of hybrid vehicles.

One of SAIC's core businesses is to support and advance new energy bus
operations in the aim of being the leading manufacturer at the Chinese
domestic market, and to explore the export opportunities in overseas
market. Volvo is focused on capturing a leading position in development
of new energy bus markets all around the world.

To realize these targets in partnership, the parties have agreed to
establish the new joint venture company in China. The new company will
act as the carrier for the new energy bus industrialization. Research
and development projects within SAIC Motors and Volvo Buses regarding
new energy driveline systems, will be industrialized in the new company.

The new company will concentrate on assembling new energy driveline
systems and complete vehicle matching, prototype manufacturing and
testing new energy driveline systems.

April 19, 2011

For further information, please contact Per-Martin Johansson, Press
Officer, +46 31 322 52 00,
per-martin.johansson@volvo.com (per-martin.johansson@volvo.com)

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