China car manufacturers Dongfeng Motor Group Company Limited and National Electric Vehicle Sweden (NEVS), which purchased broke vehicle manufacturer Saab in 2012, finalized a contract Monday to mutually create eco-friendly vehicles, the state-owned Xinhua media company revealed.
The deal can help Dongfeng market its very own brand name vehicles throughout the NEVS dealer system in European countries and the United States, as well as satisfy European legal and technological demands, Xinhua revealed.
The statement didn’t give monetary terms on the package.
The package is yet another leap forward for NEVS following economic issues led it to halt manufacture of Saab vehicles in Sweden a year ago and defence company Saab AB, from where Saab Automobile was developed in 1990, contested its utilization of the brand name.
The contract will likely permit NEVS’ planned manufacturing facility in Tianjin to pull on the enormous company network of Dongfeng, China’s 2nd biggest car maker.
NEVS reported in June it broke ground for a manufacturing facility having a possible capability of 200,000 vehicles in addition to a development and research centre, with two Chinese language associates pledging to commit 1.2 billion yuan ($187.68 million).
It stated the work would concentrate especially on “new energy automobiles”, a Chinese expression for electrical and highly electrified motor vehicles.