ASHA Corporation Completes Technology Transfer to Taisun Automotive Group
22 July 1998
ASHA Corporation Completes Technology Transfer to Taisun Automotive Group
SANTA BARBARA, Calif.--July 22, 1998--ASHA Corporation has completed the initial phase of its joint venture for the production of the ASHA Body Concept (ABC) vehicle. ASHA, having completed its task of development and technology transfer will now assist Taisun Automotive Group to take over the responsibility and direction for the production and sales of vehicles in the far east. Taisun is a manufacturer of vehicles, ships, electrical motors, fiber glass products, and chemicals.ASHA Corporation and Taisun Automotive, in a joint venture, own 85% of Jiaxing Independence Automotive Design and Development, Co. Ltd. (JIAD&D). JIAD&D is expected to produce up to 10,000 complete vehicles annually at the facility in Jiaxing. It also is expected to produce additional complete knock down kits at the same facility. A knock down kit includes all of the components for one vehicle.
ASHA Corporation will retain its royalty position in each vehicle manufactured under agreement with JIAD&D. The amount of the royalty has not been disclosed.
Engineering staff, formerly working on the ABC project, are being reassigned to support ASHA's increased contract engineering services. The savings of approximately $55,000 per month will serve to reduce ASHA's operating expenses and increase bottom line profitability.
According to Jack McCormack, ASHA Chairman and C.E.O., " This successful transfer of technology on the ABC vehicle to our China partners now frees ASHA to examine other global markets in which our proven ABC technology may be sold."
ASHA Corporation, headquartered in Santa Barbara, develops advanced technology products, automotive design and manufacturing techniques for the global automotive industry. The stock is traded on the NASDAQ SmallCAP Market (Symbol ASHA).
Visit ASHA's Website at www.ashacorp.com for further information.