U.S. firm to help Wanxiang produce EVs in China
Chinese supplier Wanxiang Group plans to form a joint venture with U.S. electric commercial vehicle producer Smith Electric Vehicles Corp. to build electric school buses and commercial vehicles in China.
The companies signed a letter of intent this month, Smith said in a statement. The companies must finalize their agreement and seek regulatory approval.
Under the agreement, Wanxiang will make a $25 million (157 million yuan) equity investment in Smith, a privately held company based in Kansas City, Mo., and the companies will establish a 472 million yuan joint venture.
The vehicles will be built with Wanxiang's components and Smith's vehicle designs. They will be marketed under the Smith brand.
"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, executive director of Wanxiang EV Co., a unit of Wanxiang Group.
