The reporter recently learned that Huatai has signed cooperation agreements with more than ten car companies in China and will supply diesel engines and gearboxes. Huatai is the first domestic vehicle company to provide diesel power systems for other manufacturers. At present, the cooperative car companies have entered the test phase. "We have signed a series of agreements with them on technology, business, and matching calibration. “Tong Zhiyuan, president of the Huatai Automobile Group, revealed in an exclusive interview with this newspaper recently. It is reported that this cooperation will be aimed at a full range of Huatai diesel engines, including the 2.0L diesel engine system currently installed on the new Santa Fe model. Tong Zhiyuan stated that Huatai’s important task at this stage is to expand the key components business. In addition, in order to meet the requirements for multiple vehicle manufacturers to supply diesel engines in batches, Huatai has formulated an engine expansion plan. The first-phase engine production capacity will reach 150,000, the second-phase production capacity will climb to 300,000, and the third-phase production capacity will reach 70. 10,000 cars. An agency recently released a survey saying that half of domestic parts suppliers are expected to have a profit of less than 5% in 2009. Tong Zhiyuan believes that the reason for this situation is the low level of the domestic parts and components industry. Huatai is to become a system assembly supplier.