In the news release, Geely and Kandi Announce New Green Partnership, issued 28-Mar-2013 by Zhejiang Geely Holding Group Co., Ltd. over PR Newswire, we are advised by the company that the first paragraph, first sentence, should read, "Geely and Kandi Technology Corporation announced ..." rather than "Geely Holdings and Kandi Technology Corporation announced ..."; and first sentence, second paragraph, should read, "… with initial invested capital reaching 1 billion yuan, … " rather than "… with initial invested capital reaching 100 million yuan, …"; and last paragraph, should read, "… (KNDI) …" rather than "… (KNDI) …" as originally issued inadvertently. The complete, corrected release follows:
Geely and Kandi Announce New Green Partnership
Company to be based in Zhejiang Province
Geely and Kandi to Work Together on Electric Public Transport Solutions
HANGZHOU, China, March 28, 2013 /PRNewswire/ -- Geely and Kandi Technology Corporation announced the creation of a framework of cooperation on March 22 which will see the two companies work together in a new joint venture company involved in the research and development, production, investment, and marketing of electric vehicles.
The new company will be formed with Geely's subsidiary, Shanghai Maple Auto, and Kandi with initial invested capital reaching 1 billion yuan, with each party taking a 50% share in the new company. Both parties will be equally involved in the new joint venture by playing off each other's strong points in the areas of electric car development and car production.
With increased importance placed on the development of new energy vehicles in China by the government at all levels of governance, and with consumers' ever growing environmental concerns, Geely and Kandi are aiming to bring mass market, affordable cars to the markets. In initial stages, the new company will focus on developing electric vehicle solutions for the public transport system in the Hangzhou area, and will later expand to other areas, including electric automobiles. Hangzhou was selected as an electric vehicle test city along with 24 other pilot cities in China to better understand infrastructure and consumer needs during the transition from traditional gasoline engines to new energy products, and as such the city has already invested considerable amounts of funds into developing electric vehicle infrastructure around the city, making it a strong starting point for the new joint venture company.
Hu Xiao Ming, the General Manager of the new joint venture, remarked, "New energy vehicles are being supported by city, provincial and state-level leaders, therefore enterprises in China have a responsibility to provide reliable and convenient products and services, as well as new business models."
Geely's chairman Li Shufu commented, "Geely has been researching electric vehicles for a number of years and has accumulated a great amount of experience in this area. We aim to expand our abilities by partnering with Kandi to further the development of the electric vehicle and together exploit growing consumer demand for green cars."
Geely (Hong Kong Stock Exchange: 175) is engaged in the research and development, production and sales of automobiles. Geely has the capacity to produce 600,000 vehicles, engines and gearboxes per year. Geely's existing electric vehicle range has already entered into the Ministry of Information and Technology's list of supported electric vehicles, which further strengthens the central government's support for Geely's products.
Kandi Technology (KNDI) is a Jinhua, Zhejiang Province-based company focused on the research and development, production and sales of both electric and motor vehicles. Kandi has established itself as the world's largest manufacturer of off-road vehicles, electric vehicles, ATV's, trikes, farm vehicles, etc, which includes over fifty different kinds of vehicles.