www.chinabuses.org: Huanghai Bus, the subsidiary of Liaoning SG Automotive Group Co., Ltd.( SG) mainly produces city buses with annual production capacity of about 4000 units and occupies the position in the northern public transport market, however, is not enough in new energy area. Since 1950’s, CSR Zhuzhou Institute Corporation Limited has referred to the development of motor and control system with technology accumulation and lacks of experience of buses manufacturing and marketing.

It is believed that the cooperation between both parties is for the founding of auto parts production base in southern region and obtaining the local favorable policy and on the other hand, for the participation of motor and electric control of electric vehicles. One development and producing platform of CSR Zhuzhou Institute Corporation Limited is shared for motor, electric control of new energy buses as well as related products of electricity multiple unit.

The key factor for the cooperation is whether the motor and electric control can be covered in the joint venture. The joint venture base is CSR Electric Vehicle Co., Ltd with the net profit of around 10 million Yuan and possible net profit of more than 20 million Yuan in 2010.