(Yicai Global) Nov. 5 -- Chinese powertrain systems maker Enpower Electric said it has teamed up with German auto parts giant Continental to jointly develop such systems and core components for new energy vehicles.

Enpower signed a memorandum of understanding with Continental’s Chinese arm on Nov. 3, the Guangdong-based company said last night, without providing any financial details. They will also jointly work on technical development, staff training, and supply chain building.

The deal shows that Enpower's technologies and production capacity in the field of NEV powertrains has been recognized by a leading global parts firm, which will help boost the company's brand image and industry influence, it said.

Continental will become Enpower’s exclusive sales partner, while the Chinese firm will create new products using the Continental trademark. Continental will also sell Enpower’s own-label products. Jointly developed general parts will be sold in Europe, the US, Japan, Korea, Vietnam, Singapore and India under Continental’s trademark.

Shares of Enpower Electric [SHE:300681] closed 5.4 percent lower today at CNY92.9 (USD14.51) apiece, after earlier soaring as much as 9.5 percent to a record high of CNY107.5, amid an overall decline in the Chinese stock market.

The tie-up can help Enpower improve its powertrain development technology and production process, the firm said. It will also get access to Continental's brand, international sales channels and customer relationships. Continental will benefit from cost-effective production technologies and manufacturing capabilities for powertrain components, Empower said.

Set up in 2005, Enpower’s main products include a series of core components for new energy vehicles, such as powertrains, chargers, motors and motor controllers, according to its website.

Editor: Tom Litting