Transnational Automotive Signs Memorandum Of Understanding With Zonda Group Of China
Transnational Automotive Group, Inc. ("TAUG") (OTCBB: TAMG) has signed a Memorandum of Understanding (MOU) with the Zonda Industrial Group of China for the provision of buses, bus parts, vehicle assembly and sales in China and the United States, international promotion and sales of Zonda vehicles, and automotive technical cooperation.
Under the terms of the MOU, signed 1 April 2006 in Yancheng, China, TAUG plans to promote and sell Zonda buses internationally, including website promotion and establishment of an overseas distribution network for Zonda from China. The companies also envision a joint bus development product where they will develop motor vehicle products destined for the US and China market, with an emphasis on alternative fuel engines and engines that will meet recent joint US-China agreements on pollution reduction. The MOU calls for TAUG to inject forty million RMB (about $5M US) in cash and technology and Zonda to provide a factory facility.
The Zonda Group is a Chinese industrial concern that manufactures buses, automotive tooling and equipment, and industrial goods. It is ranked 705 of the 1000 largest Chinese companies, and is the 10th largest equipment manufacturer in the country. Zonda recently won an award at the Shanghai BusWorld Asia 2006 Exhibition for the best bus appearance design.
Mr. Liankuan Xu, who as CEO, signed the MOU on behalf of Zonda Industrial Group, declared: "This is an excellent joint venture opportunity for both companies. We have similar international marketing goals, and our corporate strengths are complementary. We look forward to accomplishing great things with TAUG."
Mr. Joseph W. Parker, Chairman and CEO of TAUG, stated: "While we look forward to developing and promoting joint products with Zonda, their current products will have a strong place in our operations and current model lineup."
TAUG has purchased 28 buses from Zonda for its African operations. The buses are in final assembly, and delivery is imminent.
About Transnational Automotive Group
Transnational Automotive Group (OTCBB: TAMG), a Nevada corporation, is a transportation management, sales and manufacturing company. Our vision is to become the leading provider of transportation management and vehicle sales in the developing world. Headquartered in Seattle, WA, TAUG has been established through key acquisitions of leading transportation and automotive businesses.