Chongqing Zongshen Power Machinery Co. announced today that it has signed a memo of cooperation with Mission Motors, which could see the Chinese company link up with the San Francisco firm to develop electric drive systems for the emerging market and in other markets throughout the world.
In the memo, Zongshen outlines its intent to become a major shareholder in Mission Motors, and to also inject capital into the small startup after it presents a three year plan to the Chinese company. For Mission Motors the move would be valuable strategic partnership to gain a foothold in China, which already has a booming two-wheeled market and need for reduced CO2 emissions.
“Mission Motors has identified Zongshen Power as a potential partner in the Chinese electric motorcycle market,” says Mission Motors’ Jit Bhattacharya. ”China is an enormous market for electric two-wheelers with a number of Chinese cities having banned gasoline-powered motorcycles and scooters. We are exploring how we can leverage Mission Motors’ technology with Zongshen’s strengths in high volume, low-cost manufacturing to create a lower cost electric powertrain for the Chinese market. As part of this ongoing discussion, Zongshen Power is also considering a strategic investment in Mission Motors, but nothing has been finalized.”
It is our understanding that this is a custom in Chinese business culture where companies sign a document which explains that they are considering a business transaction. While nothing is final yet, and we should be point out that other reports appear to over-state the current situation, suggesting that Zongshen has already acquired a majority interest in Mission Motors, while in fact Zongshen merely hopes to complete an investment in the San Franciscan company by the end of June this year.
Chongqing Zongshen is one of China’s largest motorcycle engine manufacturers, and marks yet another series of moves by American electric motorcycle companies looking not only for funding, but also looking abroad for business opportunities. Just last month we reported that Zero Motorcycles closed a $5.5 million round of investment, and Brammo also recently announced a partnership with Jackie Chan’s JCAM to distribute bikes in Asia.
Source: Scottrade
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Photo Credit – the amazing and talented Douglas Sonders. When I get rich, I want hire him to make me look cool.
RT @Asphalt_Rubber: Chinese Motorcycle Powerhouse Zongshen Eyes Mission Motors for Strategic Partnership – http://bit.ly/bZVWIX #motorcycle
RT @Asphalt_Rubber: Chinese Motorcycle Powerhouse Zongshen Eyes Mission Motors for Strategic Partnership – http://bit.ly/bZVWIX #motorcycle
An interesting development for sure. I wonder where Mission sees themselves in a few years. Agreed, that is a cool photo series.
RT @skadamo: RT @Asphalt_Rubber: Chinese Motorcycle Powerhouse Zongshen Eyes Mission Motors for Strategic Partnership – http://bit.ly/bZVWIX #motorcycle
Sounds like a deal with the Devil. I hope Mission closely guards their intellectual properties.
@CBontheMV Why do you think it sounds like a deal with the devil? To me, it sounds shrewd, visionary, and profitable.
@Brammofan – because Chinese manufacturers have a history of stealing intellectual property in order to further their own business prospects. It’s well documented across industries that many manufacturers take the technologies they’re contracted to produce and set up similar knock-off lines or use the technology to advance their own products.
Chinese Motorcycle Powerhouse Zongshen Eyes Mission Motors for … http://bit.ly/anqbtp
I can confirm that; worked on 3 different projects with three different groups of Chinese companies… In the furniture, Optics and funiture again. They were presented as honest, independ auditors said the same, they were real nice and all… Got shafted three times… I refuse to work with China now.
First project, they did a fine proto, then the pre-series was crap beyond belief.
Second project; they tried to sell to the competition before even first delivery.
Third time they tried strealing our client. Client not amused.
Chinese Motorcycle Powerhouse Zongshen Eyes Mission Motors for …: Motorcycle news, Industry Rumors, MotoGP, Worl… http://bit.ly/cWIG3e
We’ll see in the impending trade war between the US and China allows this to happen. I think it’s a good idea, except for the problem with intellectual property laws in China, which is a major issue. I would think South Korea or a similar country would be a better place to try this, just because of IP law.
Either way, I hope it brings down the cost of Mission’s product. $68,995 is just ridiculous, even if it is semi-bespoke. What I actually think will happen, though, is Mission will have it’s ideas stolen, end up in a protracted legal battle, and fold because of legal expenses.
Mission Motors e motorcycles are nearing a deal w/a major Chinese company, meaning millions of gas scooters off the road http://j.mp/b7wrLq
RT@asphalt_rubber:Chinese Motorcycle Powerhouse Zongshen Eyes Mission Motors for Strategic Partnership – http://bit.ly/bZVWIX #motorcycle
RT@asphalt_rubber:Chinese Motorcycle Powerhouse Zongshen Eyes Mission Motors for Strategic Partnership – http://bit.ly/bZVWIX #motorcycle
It is interesting that the notion of “Imitation is the sincerest form of flattery” exists in these cultures — however if they copy and sell, they will have hard time penetrating established world markets where IP/patent protection is strong.
So the risk is really in China — and there even if you do not have this kind of deal, they will make copies anyway! i.e. internal Chinese market best case scenario is some market share for US company– for a short period of time!!
As part of this ongoing discussion, Zongshen Power is also considering a strategic investment in Mission Motors, but nothing has been finalized.”