Smith Electric Vehicles attracts Chinese investment

Smith Electric Vehicles Corporation, a specialist in all-electric commercial vehicles, has signed a letter of intent with Wanxiang Group, an automotive parts manufacturing and supplier.
March 13, 2012 Read time: 2 mins
3822 Smith Electric Vehicles Corporation, a specialist in all-electric commercial vehicles, has signed a letter of intent with 3823 Wanxiang Group, an automotive parts manufacturing and supplier. The principal terms include a US$25 million equity investment in Smith by Wanxiang and up to a $75 million investment in a joint venture between Smith and Wanxiang to develop, manufacture and commercialise all-electric school buses and commercial vehicles for multiple industries in China. Under the Smith brand, these vehicles will combine Wanxiang’s EV component technologies with Smith’s proprietary platform vehicle designs, including its Smith Drive and Smith Power systems. Both the investment and the joint venture are subject to the execution of definitive agreements and receipt of regulatory and other third party approvals.

“Wanxiang’s high quality precision manufacturing capabilities and purchasing relationships bring significant value to our business in our current stage of development,” commented Bryan Hansel, chief executive officer and chairman of Smith. “Wanxiang is one of China’s most respected companies and we look forward to a long, mutually beneficial relationship that advances the global commercial electric vehicle industry.”

“Smith’s market leadership in the U.S. and Europe bring valuable experience and technology to address the significant opportunity for all-electric commercial vehicles in China," said Pingyi Li, the executive director of Wanxiang EV Co. Ltd. "Working together, we see tremendous opportunity to serve this growing market and to leverage volume and cost synergies back into Smith’s global business. We are pleased to have them as our partner."

For more information on companies in this article

Related Content

  • Volvo warns EU on its approach to electric vehicles and its transport white paper
    March 22, 2012
    Volvo Car Corporation warns that EU targets for cutting carbon dioxide emissions are being jeopardised by the absence of harmonised incentives to consumers. Another key issue is the urge for continuous support to automotive research and development, including electromobility. Stefan Jacoby, president and CEO of Volvo Car Corporation, told an industry seminar in Brussels yesterday that jobs, investment and competitiveness in the European car industry could be threatened by the European Commission's approach
    Read More
  • Land of ITS opportunities
    February 2, 2012
    Geographically, Russia, the largest country in the world, is vast. So too are the opportunities for the global ITS community, which is why ITS Russia has been actively promoting the country and the opportunities that abound there. ITS Russia is reaching out around the world. In October, at the 17th ITS World Congress in Busan, South Korea, a cooperative agreement was signed with ITS America to promote and strengthen research, educational, and commercial cooperation in the ITS field among the two association
    Read More
  • Land of ITS opportunities
    February 6, 2012
    Geographically, Russia, the largest country in the world, is vast. So too are the opportunities for the global ITS community, which is why ITS Russia has been actively promoting the country and the opportunities that abound there
    Read More
  • New joint report outlines EU and US cooperation on connected vehicle standards
    October 24, 2012
    The United States and the European Union (EU) are working together to foster international connected vehicle research and international harmonisation of the technology and standards necessary for broad deployment of connected vehicle systems.
    Read More

Highlighted Content