Chinese Engine Maker to Build First Diesels for Domestic Market
April 02, 2008

By Bill Visnic

Diesel envy officially hits China with the announcement from China Yuchai International Limited that it will assemble the first diesel engines earmarked for passenger cars in the Chinese domestic market.

China Yuchai, which said in a release it is the nation’s leading manufacturer and distributor of diesels, has broken ground for an the new engine-making facility for Jining Yuchai Engine Company Ltd., a joint venture formed between China Yuchai and domestic automakers Geely Holding Group Co. Ltd. and Zhejiang Yinlun Machinery Co. Ltd.

The first engines from the new facility will be 2.0-liter turbodiesels that comply with Euro V emissions standards being adopted in Western Europe beginning this fall. Meanwhile, Beijing currently is phasing in Euro IV emissions standards, in time for the 2008 Olympics in that city; the rest of China adopts Euro IV starting in July 2010.

When the new facility is complete, the Jining Yuchai venture will produce the first diesels for Chinese domestic cars, although the company’s statement did not say when that availability will begin. The Euro V-compliant design suggests the engines will be exported as well.

China Yuchai holds 52 percent of the venture; Geely owns 30 percent and Yinlun holds an 18 percent stake.

Bill Visnic is a senior editor of Edmunds’ AutoObserver, specializing in product and technical areas. He was senior technical editor at Ward's Automotive Group.

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