Chongqing Lifan Industry Group Co. Ltd (Lifan) of China today signed a Heads of Agreement with Ricardo plc to develop a new family of car engines and transmissions.  The proposed collaboration between the two companies is aimed at providing Lifan with internationally competitive powertrain products and technologies to facilitate its continued expansion

The signing ceremony, organised by UK Trade & Investment, was witnessed by Baroness Amos, Leader of the UK House of Lords, and Mr Jia Qinglin, the Chairman of Chinese People’s Political Consultative Committee (CPPCC) in London. The Heads of Agreement was signed by Yin Mingshan, Chairman of Chongqing Lifan Holding Co.Ltd, and Marcus Beresford, Chairman of Ricardo plc.  Part of a major investment programme by Lifan, the initial focus of envisaged for the collaboration is the design and development of a completely new family of car engines of 0.8-2.4 litres displacement, new transmissions featuring technologies such as AMT and DCT, and support in the manufacturing implementation of these products.  The first contract under the terms of this Heads of Agreement is expected to be placed imminently.

Since its formation in 1991 Lifan has developed rapidly to become one of China’s most dynamic and successful industrial companies, with group export sales in 2005 of nearly US$300 million to 110 countries and regions.  With its origins in the two-wheeler sector, the company has the capacity to produce 2.5 million motorcycle engines and 1 million motorcycles annually.  In August 2003 Lifan announced an intention to enter the automotive sector and has now commissioned a new vehicle assembly facility on a greenfield site in Chongqing, China.  In early 2006 Lifan went into production with its first passenger car, the Lifan 520. 

Ricardo Plc is one of the world’s leading powertrain, driveline and transmission technology providers, with technical centres in the UK, Germany and the USA, and offices in Shanghai and Tokyo.  Combining business, product and process strategy with fundamental technical research and the implementation of large-scale new product development programmes, Ricardo is able to take on the greatest challenges in the industry including engine, transmission and driveline design, engineering, testing and systems integration.

Commenting on the appointment of Ricardo as its powertrain partner, Wang Yan Hui, President of Chongqing Lifan Passenger Vehicle Co Ltd, said:

“This is a key strategic investment for Lifan as we move to develop our automotive business and expand both our market penetration in China and overseas. We chose Ricardo as our powertrain partner because of its extensive experience of designing and developing world-class engines and implementing them into production. We also have future requirements for advanced transmission systems and feel that Ricardo can offer Lifan a ‘one stop shop’ for both of these key areas of the powertrain."

Dave Shemmans, CEO of Ricardo plc, said:

"Ricardo’s expansion into the Asia, with this region’s high automotive growth, is very exciting for the company.  Lifan is a strong, ambitious organisation with plans to develop its automotive product range and export potential, and we are delighted to be working in partnership with this leading Chinese company. We believe this will be the start of a long, mutually beneficial relationship which draws upon our skills in engines, transmissions and associated control & electronics technologies.”

NOTES TO EDITORS:

Ricardo plc: With technical centres in the UK, USA, Germany and the Czech Republic, and offices in Shanghai and Tokyo, Ricardo is a leading independent technology provider and strategic consultant to the world’s automotive industries. The company’s engineering expertise ranges from vehicle systems integration, controls, electronics and software development, to the latest driveline and transmission systems and gasoline, diesel, hybrid and fuel cell powertrain technologies. Its customers include the world’s major vehicle, engine and transmission manufacturers, tier 1 suppliers and leading motorsport teams. Ricardo is committed to excellence and industry leadership in people, technology and knowledge; approximately 70 per cent of its employees are highly qualified multi-disciplined professional engineers and technicians. A public company, Ricardo plc posted sales of £178 million in financial year 2006 and is a constituent of the FTSE techMark 100 index – a group of innovative technology companies listed on the London Stock Exchange.