Motor maker UQM Technologies (NYSE MKT: UQM) has entered into a stock purchase agreement with China National Heavy Duty Truck Group (CNHTC) through its subsidiary Sinotruk.
CNHTC will acquire 34% of UQM’s stock, and the two companies will create a joint venture to manufacture and sell electric propulsion systems in China. Sinotruk expects to be a significant purchaser of electric drivetrains from the JV for its commercial vehicles.
Sinotruk is one of the world’s largest commercial vehicle groups – it has over 25,000 employees, and shipped some 172,000 commercial vehicles and 106,000 engines in 2016, earning revenue of $4.9 billion.
“After a long and thorough process to find the right strategic partner to enter the China market and expand globally, we are thrilled to be joining forces with CNHTC,” said Joe Mitchell, CEO of UQM. “[CNHTC meets] three key criteria: 1) provide the necessary capital to allow us to enter the China market; 2) provide the infrastructure to support our continuing product development and operations; and 3) provide access to customers in China to grow our business.”
“Vehicle electrification is the future and we are delighted to bring UQM technology and capabilities into the CNHTC organization,” said Mr. Ma Chunji, Chairman of CNHTC. “UQM has developed some of the world’s leading electric propulsion systems and has a team of talented people, which is key to developing leading-edge technologies.”