Antonov pilot project

Antonov has announced an agreement with Chongqing Loncin for a pilot project to develop, manufacture and market a small six-speed automatic transmission.

Loncin currently manufactures 1.5 million motorcycles per annum and over three million engines for domestic use and export. It supplies components to domestic and major western automotive brands.

The companies will work closely together and will each provide €1.2m to fund marketing activities and the production of prototype demonstration vehicles.

The companies will discuss forming a joint manufacturing venture during 2008, dependent on the success of the pilot project and on reaching mutually agreeable commercial terms.

This agreement is said to support Antonov’s evolving commercial strategy towards direct involvement in the application of its technology. This will enable Antonov to maintain closer control over its intellectual property rights in order to reduce risk and generate better returns compared with a pure licensing business model.