Permo-Drive Technologies Ltd. Signs Agreement for Fuel-Saving Hybrid Vehicle System with Dana Corporation
DETROIT--May 15, 2003--Permo-Drive Technologies Ltd. has signed a preliminary agreement with Dana Corporation for exclusive rights to its Regenerative Drive System (RDS) for use by the U.S. Army, according to Max Bosotti, Permo-Drive's chief executive officer.Permo-Drive will receive royalties under a licensing agreement for RDS technology with Dana. Financial details of the proposed program were not disclosed.
Permo-Drive's RDS is a hybrid hydraulic drive system capable of reducing fuel consumption on trucks and buses by up to 40 percent, according to Bosotti. In addition to improved fuel economy, the company's regenerative energy system has demonstrated an ability to significantly increase brake life and reduce hydrocarbon-and-particulate emissions for all classes of commercial vehicles.
"We are excited to be working with Dana to supply our RDS technology to the U.S. Army," said Max Bosotti. "We see this agreement as a significant first step toward the commercialization of this cost-saving technology."
Permo-Drive has been working with the U.S. military since signing a CRADA (Cooperative Research and Development Agreement) with the U.S. Army's National Automotive Center (NAC) in Warren, Mich. last year. That agreement funded testing of Permo-Drive's hybrid-hydraulic driveline systems for military and commercial applications on both new and existing vehicles.
"RDS technology has gained significant exposure from working with organizations such as NAC, TACOM and Stewart and Stevenson, as well as WestStart and CALSTART," added Paul Chandler, Permo-Drive's vice president of North American Operations. "This agreement with Dana Corporation will keep the momentum moving forward as awareness increases on the benefits of this technology."
The Army's Tank-Automotive and Armaments Command (TACOM) recently awarded Stewart and Stevenson a contract to produce vehicles equipped with the new technology as soon as late 2005.
Stewart and Stevenson is a billion-dollar manufacturer of military and public transportation equipment. Permo-Drive's RDS technology is being proposed for use in the U.S. Army's Family of Medium Tactical Vehicles (FMTV). The Army previously had notified Permo-Drive of its plans to introduce the technology into its FMTV fleet of vehicles.
NAC Director Dennis Wend noted that "hybrid-hydraulic systems not only have the potential to provide significant fuel-economy savings for future generations of military vehicles, but also can have an almost immediate impact on the fuel efficiency of hundreds of thousands of vehicles already in operation.
"The U.S. Army operates a fleet of nearly 250,000 vehicles and is working to transform that fleet into a lighter, more mobile and more fuel-efficient force."
Permo-Drive's hybrid-hydraulic system captures previously unused energy generated through a vehicle's braking system, then releases the energy back into the driveline as power is needed. Key design features include:
| -- | An innovative inline driveshaft, |
| -- | Energy storage devices that utilize special composite materials, |
| -- | Ultra-light-weight metals, and |
| -- | Advanced hydraulic and electronic engineering. |
"RDS technology has the potential to save public and private fleet operators billions of dollars in fuel and maintenance costs," said Chandler. "The RDS system itself represents a remarkable integration of vehicle dynamics, advanced hydraulics, mechanical engineering, accumulator research, material science, computer telemetry and electronics."
Permo-Drive Technologies Ltd. is an Australian-based company with North American offices in Ann Arbor, Mich. The company is focused on the development of regenerative energy-management systems for the automotive industry. More information about the company is available on the Internet at www.permo-drive.com.
Dana Corporation is a global leader in the design, engineering and manufacture of value-added products and systems for automotive, commercial and off-highway vehicle manufacturers and their related aftermarkets. The company employs more than 60,000 people worldwide. Founded in 1904 and based in Toledo, Ohio, Dana operates hundreds of technology, manufacturing and customer service facilities in 30 countries. The company reported 2002 sales of $9.5 billion. Dana's Internet address is www.dana.com.