Chongqing Changan Automobile Co has signed a contract to jointly develop fuel efficient engines in cooperation with Australian design company Orbital Corporation, according to a press release issued by Orbital last Thursday.

The development work will be carried out on Changan's current gasoline engine platform using Orbital's FlexDI technology, with a target to develop engines in appliance with Euro IV emissions standard.

Under the contract, Changan will pay Orbital AU$2.4 million (US$1.75 million) over the next 18 months to carry out the proof of concept development work in Orbital's engineering facility in Perth and it proves successful, Changan plans to mass produce the engines for its vehicle lineup in future.

Mr. Zhan Zhangsong, Vice President of Changan Auto Research Institute, said that he believes the project, if successful, will provide Changan a competitive advantage in the Chinese market.

Headquartered in Perth, Western Australia, Orbital is an international developer of innovative technical solutions for a cleaner world. Orbital offers engines and engine management systems for application in motorcycles, marine and recreational vehicles, automobiles and trucks.