Smith, Wanxiang to develop Smith EVs in China
US-based Smith Electric Vehicles has signed a letter of intent with a Chinese auto-parts manufacturer Wanxiang to provide additional funds for Smith and allow it to enter into the Chinese electric-vehicle (EV) market.
The agreement intends Wanxiang to invest $25m in Smith Electric and $75m in a joint venture (JV) to develop and sell Smith's electric commercial trucks and school buses in China.
Smith chairman and chief executive officer Bryan Hansel said Wanxiang's high quality precision manufacturing capabilities and purchasing relationships bring significant value to its business in our current stage of development.
"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," Hansel said.
The EVs will incorporate Wanxiang's EV componentry technologies with Smith's proprietary platform vehicle designs which include Smith Drive and Smith Power systems.
Wanxiang EV executive director Pingyi Li said Smith's market leadership in the US and Europe bring valuable experience and technology to address the significant opportunity for all-electric commercial vehicles in China.
"Working together, we see tremendous opportunity to serve this growing market and to leverage volume and cost synergies back into Smith's global business and we are pleased to have them as our partner," Li said.
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