Zhongding Holding (Group) Co., Ltd. and Global Optima LLC commit up to $18 million of engineering funding to EcoMotors
TROY, Mich., May 17, 2010-- EcoMotors International CEO Don Runkle announced today that Zhongding Holding (Group) Co., Ltd. has signed a letter of intent to fund further development of EcoMotors innovative opoc® engine technology. The agreement is the most recent expression of the global automotive industrys endorsement of, and enthusiasm for, the unique opoc® advantages.
"We are tremendously excited to partner with Zhongding on this important technology-development program," said Runkle. "Over the coming years, this initiative will create a range of high-skill R&D jobs here in Southeast Michigan, further underscoring the regions critical role as the incubator of tomorrows high-efficiency powertrain solutions."
The agreement specifies that Zhongding Holding (Group) Co., Ltd. and Global Optima LLC will commit up to$18 million of advanced engineering focused on the proven opoc® technology, including refinement of the existing EM100D diesel engine, and development of a smaller gasoline version, the EM65FF. Global Optima has expressed the possibility of direct equity investment in EcoMotors. EcoMotors and Global Optima commit to cooperate with Zhongding with the intent of accelerating international commercialization of the opoc® technology.
The Zhongding Holding (Group) Co., Ltd. is a large Tier1 supplier which includes Zhongding USA, based in Monroe Mich. Global Optima LLC is an engineering services company based in Allen Park Mich., and has operations in the USA and a new technical center in Shanghai China.
The revolutionary opoc® provides such unparalleled benefits as:
- Higher Efficiency: The unique engine architecture – specifically, the ability to achieve true modular displacement — delivers up to 60% greater fuel efficiency.
- Half the weight and half the size of a conventional engine: The opoc® engines smaller profile yields unparalleled power density and exciting new vehicle design opportunities.
- Lowest Cost Solution: With 50% fewer parts than a conventional engine, the opoc® is less expensive to manufacture, to purchase and to operate.
Governor Jennifer M. Granholm said today's announcement bolsters her administration's ongoing efforts to diversify Michigan's economy and create new jobs. "One of the economic sectors we're working to grow is advanced manufacturing," Granholm said. "The EcoMotors, Zhongding and Global Optima venture is further evidence that Michigan has the business climate, infrastructure and skilled workforce to compete in the global marketplace."
Mr. Xia Dinghu, the Chairman of the Zhongding Holding (Group) Co., Ltd., came to Michigan for todays signing ceremony. Speaking through an interpreter, Mr. Xia said, "This initiative with EcoMotors is another milestone in Zhong Dings portfolio of partnerships with premier North-American automotive leaders. We are confident that further development of the remarkable opoc® technology will enable the new generations of clean, fuel efficient vehicles that car buyers expect and demand in the years to come. I would also add that this agreement has been facilitated tremendously by the visionary work of Edward Chen and Global Optima LLC of Detroit, our international commercial partner."
Established in early 2008, EcoMotors is quickly achieving critical mass in terms of changing the landscape of internal combustion power. Based in Troy, Mich. EcoMotors is developing high-efficiency engines — specifically the unique opoc® engine - for use in cars, light trucks, marine applications, agricultural vehicles, stationary generators, etc.; essentially anywhere conventional gas or diesel power is utilized.
Led by Prof. Peter Hofbauer (Chairman and Chief Technical Officer), Don Runkle (CEO) and O. John Coletti (President and COO), EcoMotors is pioneering the next era of fuel efficiency and clean, affordable power.
EcoMotors is a Khosla Ventures portfolio company. Founded by Vinod Khosla, Khosla Ventures (Menlo Park, California) is a venture capital firm dedicated to "making a difference," balancing the achievement of social benefits with material profit.