Aug 11 2009
Enova Systems, Inc. (NYSE Alternext: ENA) (AIM: ENV) (AIM: ENVS), a production company in the emerging alternative energy industry and a leading developer of proprietary electric, hybrid and fuel cell digital power management systems, confirmed today that it has delivered the first seventy (70) pre-transmission hybrid drive systems to First Auto Works. FAW has ordered an additional one hundred-fifty (150) hybrid drive systems for delivery in 2009.
Enova Systems and First Auto Works have executed an agreement to supply a further eight hundred (800) pre-transmission hybrid drive systems in 2010.
Enova Systems CEO Mike Staran commented, “These developments represent a solidification of Enova as a tier one production supplier of unique clean vehicle solutions, capable of serving the largest vehicle OEM’s in the world. Enova expects that this agreement will assist us in targeting additional business for rapid growth, especially in China.”
Enova has implemented significant process improvements to increase capacity, quality control, and lower cost, thereby improving the value proposition for customers. The improvements are part of Enova’s initiative over the past 18 months to increase output for anticipated demand from core customers and a growing clean energy market.
First Auto Works is one of China’s largest vehicle producers, manufacturing in excess of 1,000,000 vehicles annually. The Enova drive system will be integrated and branded under the name of Jiefang. The Jiefang 12 meter hybrid bus can carry 103 passengers and travel at a maximum speed of 85 kilometers an hour. The bus meets Euro III emission standards. It will consume only 30 liters of fuel every 100 kilometers and discharge 20 percent less emissions.
These hybrid power buses are part of China's initiative to produce 500,000 electric and hybrid power vehicles. The initiative will account for 5 percent of the automobile market, which is in accordance with China's three-year development plan for the auto industry, released in February.
China is offering subsidies in 13 trial cities, including Beijing, Shanghai, Changchun, Dalian and Shenzhen. Each energy-saving or new energy vehicle used in public services attracts a subsidy of up to 600,000 yuan, according to a new policy jointly issued by Ministry of Science and Technology and Ministry of Finance.
The municipal government of Dalian and the city of Changchun has ordered many of the hybrid buses. Fifty (50) buses will be running in the city during the Summer Davos event, all of which will incorporate Enova’s drive system.