April 26 (SeeNews) - Turkish truck maker Ford Otomotiv Sanayi [BIST:FROTO], or Ford Otosan, said it has agreed to license engine technology to Chinese company Jiangling Motors Corporation Ltd and its affiliate JMC Heavy Duty Vehicle Co Ltd.
The 12-year deal allows the Chinese companies to use Ecotorq engine technology and know-how exclusively in JMC-branded vehicles produced in China, Ford Otosan said in a statement on Wednesday.
Jiangling and JMC Heavy Duty Vehicle will sell the licensed products in China and will export them to markets to be agreed by the parties.
The term of the agreement starts to run from the production date of the first licensed Ecotorq engine manufactured by JMC Heavy Duty vehicle. It will be extended every three years unless otherwise specified, Ford Otosan said.
Ford Otosan, which holds a 31.5% stake in Jiangling Motors, will get a license fee ranging from 150 euro ($196) to 190 euro per manufactured unit. It will also receive a licensing fee of 1.0 million euro as advance payment.
The agreement is subject to approval by the Chinese authorities.
($ = 0.767 euro)