Tailong Group to Develop GAMAX Own-brand Power-vehicle Biz

Taipei, July 14, 2006 (CENS)--Taiwan's Tailong Group recently set up a new subsidiary, the Gamax Moto Corp., to develop GAMAX own-brand power vehicles, including powered two-wheelers (PTWs), all terrain vehicles (ATVs), and electric scooters, with an initial capitalization of NT$100 million (US$3.08 million at US$1: NT$32.5).

Gamax will focus on the R&D and international marketing of its vehicle products, while manufacturers in mainland China will build them.

Gamax has also commissioned Taiwan's Advance Power Investment Co., Ltd (CECTEK, formerly China Engine Corp.) to develop a 500cc gasoline engine, which will be adopted in Gamax's ATV models scheduled for mass-production by the end of the year.

The Tailong Group has a long-history as a manufacturing and trading conglomerate in Taiwan, and has a business scope that covers the trading, automotive, motorcycle, and department-store fields. The group also cooperated with Suzuki Motor Corp. of Japan to jointly set up the Tailing Motor Co. Ltd., currently the No. 4 PTW maker in Taiwan and one of Suzuki Japan's major overseas PTW production bases. Currently, Tailing Motor Co., a subsidiary of the group, exports many Suzuki scooters, ATVs, motocross motorcycles, and PTW engines and parts to different markets through the Japanese partner's global sales channels.

Industry sources pointed out that former Tailing Motor vice president Michael Huang is expected to become the vice chairman at Gamax and direct the company's future development. The sources also added that Gamax has maintained a very low profile since its establishment, possibly to prevent unnecessary disputes with Tailing Motor.

According to some insiders familiar with Gamax, the new company also plans to contract with different industrial design companies in Taiwan and overseas to develop the styling of its products.

Currently, Gamax produces a light and simple scooter model equipped with a four-stroke engine that meets Euro-3 emission standards. The company's first ATV, with 250cc and 500cc engine options, is expected to be introduced by the end of the year.