There's an interesting back story here. Rong, chief executive officer of Hybrid Kinetic Group, originally planned on setting up operations to produce three million alternative-energy vehicles a year in China. However, Rong choose to flee the country in 2002 to escape persecution when he was accused of economic crimes.
Hybrid Kinetic has reportedly identified five components – batteries, electric motors, engines, compressors and transmissions – that it plans on producing at a site the company has secured in China's Shandong province. Production of the low-cost auto parts is expected to begin in 2012 and the company anticipates that its initial capacity will be enough to provide the five key components for up to half a million vehicles per year. Furthermore, Hybrid Kinetic claims it will be able to whip out those five parts at a cost of only 80,000 yuan ($12,015 U.S. at the current exchange rate) per vehicle.
[Source: Reuters | Image: Philip Jägenstedt – C.C. License 2.0]