HKPC and Geely Collaborate to Develop the First Made-in-Hong Kong Automobile

The Hong Kong Productivity Council (HKPC) today (21 June 2005) signed a Memorandum of Understanding (MOU) with Geely Automobile Holdings Limited (Geely) to collaborate in the development of the first made-in Hong Kong passenger car and related automotive components projects in Hong Kong.

The signing ceremony was officiated by the Hon. Andrew Leung, Chairman of HKPC, and Mr Li Shufu, Chairman of Geely Automobile Holdings Ltd.

Speaking at the ceremony, Mr Leung said, "This collaboration marks a milestone in the development of the automotive industry in Hong Kong. Under this arrangement, HKPC, and the soon-to-be-established Automotive Parts and Accessory Systems R&D Centre, will support Geely in its automobile development project which will be participated by Hong Kong manufacturers."

"Upon successful implementation of the project, we would look into the possibility of producing this new model in Hong Kong for export overseas, or leveraging on the CEPA advantages, to introduce to the Mainland market," Mr Leung said.

On the expected benefits of this collaboration to the local manufacturing sector, Mr Leung said, "The collaboration will open up new horizons to the local industry through participation in the development of this mid-to-high range automobile. With expected gain in capabilities and experience in product design, technology, as well as research and development, the industry will benefit from an overall enhancement in competitiveness on the international automotive supply chain."

"While HKPC and the R&D Centre will work closely with Geely to conduct various engineering design and automotive R&D projects, local manufacturers can contribute in the development of the critical components for the new automobile," continued Mr Leung. "We will provide testing services on the newly developed automotive parts, ensuring that they are in compliance with international standards, and assist suppliers to attain the TS16949 quality standard for the automotive industry," he said.

According to Mr Leung, this collaboration will also enhance the overall competitiveness of the Mainland automotive industry. He said, "Leveraging on Hong Kong's competitive advantages in quality management, technology application and market information, the automotive sector in the Mainland will be given a major boost in their development towards the ownership of brand names, intellectual property, and localization of automotive components production."

Mr Li Shufu, Chairman of Geely Automobile Holdings, said, "The cooperation between HKPC and Geely should help the company to further explore opportunities in the international automobile market, it should also help to promote the development of automobile and auto component industries in both Hong Kong and Zhejiang Province."

A briefing for the local automotive parts suppliers was held after the ceremony where Mr Joseph Poon, General Manager (CEPA Business Development and IP) of HKPC and Mr Yu Xueliang, Vice President of Geely Holding Group introduced the partnering opportunities under the HKPC and Geely collaboration.

Other officiating guests at the ceremony included Mr Zheng Yifang, Deputy Director of Economic Committee of Zhejiang Province; Mr Yuan Maorong, Deputy Mayor of Taizhou Municipal Government; Mr Zhang Ruimin, Director of Economic Committee of Taizhou; Mr Peng Xudong, Machinery Industry Office, Economic Committee of Zhejiang Province; Ms Zhang Wen, Deputy Director, Bureau of Industry & Investment, Economic Committee of Zhejiang Province; Mr Wang Jinlin, Director, Bureau of Investment, Economic Committee of Taizhou; Prof W S Wong, Science Advisor of Innovation and Technology Commission, HKSAR Government; Mr K K Yeung, Executive Director of HKPC; Mr Gordon Chan, President of Hong Kong Auto Parts Industry Association and Dr K B Chan, Chairman of The Hong Kong Electronic Industries Association.

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21 June 2005