Orbital to develop concept engine for Chinese automaker

Engine technology group Orbital Corp. Ltd., based in Australia, entered into a US$2.4 million deal with Chongqing Changan Automobile Co. Ltd of China to jointly develop a concept engine that will improve fuel economy. The program is focused on fuel economy improvement while achieving Euro IV emissions level. Orbital was selected as having the best potential to meet aggressive targets required for the program. Changan will pay Orbital A$2.4 million (US$1.8 million) to carry out the proof of concept development work in Orbital’s engineering facility in Perth over the next 18 months. Terry Stinson, Orbital’s chief executive officer, is positive that if the project is successful, it will provide Changqan a competitive advantage in the Chinese market. (May 1, 2009)