It's the same with AAPL and Google..The promise of a larger Mkt than the USA, but the products must be sold at cut-rate prices with strict controls and gov't competition..
Maybe Robert could explain it better, but it makes no sense to go into those mkts and not even have intellectual property protection.
" but the products must be sold at cut-rate prices with strict controls and gov't competition"
Weichai will probably sell the full capacity of 40,000 engines. But WPRT won't even net enough off that to pay Dave Demers compensation package.
There are many companies besides weichai in the ng business
The busness in China is much larger and they have the export market and China is about to make old trucks stop their pollution and a lot of trucks will just covert to ng or new
So its a large market and the Chinese like to pay little
So Weichai has the large truck market with a high % share
They want to get in the buss business and export
So its going to be a large market
Weichai choose to go after market share and profits low
Westport said fine
So do you go after market share and have a lot of volume or let others get bigger than you
They will being doing after market with Enn
You simply can not be big with out China and Asia ,period
Volume means volume for wprt
That means world wide they have volume
With out that you are not the leader
there are cost to bring on this new business
So % profits will always be lower than Us but profits should improve
The 40,00 vehicle plant is built and operating at full capacity
There will be cost to start the business with Enn
From what I see they will probably just supply the parts to Enn in China and it will be for coversions
In the US and Canada maybe wprt will do more with the partnership
Enn offers every thing as is common in China
They will have the stations ,do conversions ,finance,help in buying trucks
Wprt was very lucky to get Enn
One thing is for certain..China is still growing at an unbelievable rate. They need energy that will not pollute their environment any further. Nat gas, LNG, Nuclear and Solar are their best bets for cleaner energy growth.