PSI signs development deal with Chinese bus manufacturer

WOOD DALE - Power Solutions International, said it has signed a technical development agreement with Xiamen Golden Dragon Bus Co., Ltd. in Xiamen City, China.

Golden Dragon, a subsidiary of King Long Motor Co., Ltd., is one of the leading bus manufacturers in China based on annual output, range of products and sales volume.

Under the agreement, PSI will design and integrate a customized gasoline powertrain into a new medium-size bus being developed by Golden Dragon. The new powertrain will utilize a PSI's 4.8-liter, V-8 engine and a GM 6L90 automatic transmission.

"We are very excited to begin what we hope will be a long and successful business relationship with Golden Dragon," said Rick Nielsen, PSI's executive vice president of Global Business Development. "This agreement demonstrates the growth potential of the on-highway market in China.

"The bus market alone is hundreds of thousands of units yearly, and the leading manufacturers are all seeking to offer alternatives to traditional diesel engines. By entering a relationship with yet another leading OEM, PSI is building a strong position to capture this emerging opportunity," he added.

In addition to the increasing costs and complexity associated with meeting diesel emissions, the shift to gasoline is due in large part to efforts by the Chinese government to focus on clean air as a major policy objective. China's Ministry of Environmental Protection has sought to reduce overall emissions and local particulate matter by tightening vehicle emission standards. In addition, gasoline and other alternative fuel engines are lighter, less expensive, and less complex than traditional diesel engines.