Lifan signs with Ricardo

’s

(Lifan) has signed a Heads of Agreement with

to develop a new family of car engines and transmissions.

The proposed collaboration between the two companies is aimed at providing Lifan with internationally competitive powertrain products and technologies to facilitate its expansion.

Part of a major investment programme by Lifan, the initial focus envisaged for the collaboration is the design and development of a new family of 0.8-2.4 litre car engine, new transmissions featuring technologies such as AMT and DCT, and support in the manufacturing implementation of these products.

Since its formation in 1991 Lifan is said to have become one of China’s most successful companies, with group export sales in 2005 of nearly $300m to 110 countries and regions. With its origins in the two-wheeler sector, the company has the capacity to produce 2.5 million motorcycle engines and one million motorcycles annually.

In August 2003 Lifan announced an intention to enter the automotive sector and has now commissioned a new vehicle assembly facility on a site in

.