Virginia-Based GreenTech Automotive (GTA) said it will build and sell a new range of fuel-efficient cars in China.
The US automotive startup, which will start building its first vehicle later this year, said it is teaming up with Shengyang ZhongRui Investment Co to launch its Chinese production and sales venture.
The jointly owned company, which is called Ordos GreenTech Automotive Co, has started work on a new manufacturing facility in Ordos in Inner Mongolia. The plant will produce a full line of vehicles powered by US made combustion engines, hybrid powertrains and pure electric drivetrains.
GTA said the Ordos range will include small and mid-sized cars and SUVs designed specifically for the Chinese market. The Chinese plant will have capacity to build 300,000 vehicles a year with core components coming from the US.
GTA Chairman Terry McAuliffe said in a press release that the venture will open up the Chinese market for his company, while at the same time creating jobs in the US.
"Currently, the aggregated import duty and other taxes in China make imported electrical and hybrid vehicles out of reach for average Chinese consumers," McAuliffe said "GreenTech's goal is to make our products affordable."
GTA, which was founded in 2006 by McAuliffe and capital markets attorney Charles Wang, plans to start production of a new neighborhood electric vehicle, the MyCar, later this year in Mississippi. The model was designed by renowned designer Giorgetto Giugiaro.