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Petronas E01 sold to China’s Nanjing Automobile

In Cars, International News, Local News / by /

Petronas Media Relations Department released this statement on 2nd September 2005 regarding the signing of a Letter of Intent between Petronas, Nanjing Automobile Corporation (NAC) and Brilliant Culture Group Limited (BCG).



The Letter of Intent states that Nanjing Automobile will be using the Petronas E01‘s technology in it’s vehicle lineup. Brilliant Culture Group will be co-investing in the engine’s manufacturing facilities. The letter was signed in Beijing, in the presence of our Deputy Prime Minister Datuk Seri Najib Tun Abdul Razak.

It’s expected that Petronas and Nanjing will work together to develop an engine family based on the Petronas E01 in the range of 1.8 litres to 2.2 litre engines.

Nanjing Automobile has 16,000 employees and has the capacity to produce up to 240,000 vehicles a year, according to analysts. The state-owned company has more than 30 units and 400 affiliated companies. Nanjing Automobile also won the bid to purchase British car maker Rover earlier this year. I previously blogged about the Petronas E01 and it’s capabilities here.

Source: Petronas Media Relations

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Paul Tan

After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history.

 

Comments

  • AI-generated Summary ✨

    Comments express regret that Petronas's EO1 engine, a high-performance Malaysian design, was sold to China instead of being utilized by Proton, citing costs, technical challenges, and business priorities. Some believe the engine's technology can benefit Malaysia’s automotive industry, while others criticize Proton’s hesitation and political influences affecting local innovation. Overall, there is a mix of disappointment, support for technological progress, and concern over lost opportunities for Malaysia.

  • adam on Sep 05, 2005 at 1:03 am

    cool engine for power.. why don we use it for malaysian car…

    is it quieter to campro..

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  • Sorento Freak on Sep 05, 2005 at 1:37 am

    Yeah, it is too late now. Either the person at the P1 helm then didn't think the engine is worthy or Petronas put the price tag too high. Anyway, it is a technology drain if the Chinese purchase the total rights.

    We have Campro and EO1 yet Savvy has to use Renault engine, funny isn't it? Why can't these GLC collaborate?

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  • Baboonz on Sep 05, 2005 at 1:41 am

    Proton = politically driven. Too many cooks spoiling the broth. Everyone wants a piece of it.

    Look at the rest, Perodua, Naza and the other one, plus Petronas. Quietly getting on with it.

    Why can't Proton get their head down and get on with it, instead of sticking their nose into everything, and then loosing money at the same time. Kay Poh!

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  • Pentan Sakua... on Sep 05, 2005 at 1:54 am

    You all ask why the GLC cannot colloborate ka? I will tell you wgy.

    GLC = GOVERNMENT LOUSY COMPANY

    GLC = GOVERNMENT LAN SI LAN YONG COMPANY

    GLC = GOVERNMENT LAU EA COMPANY

    GLC = GOVERNMENT LUGI COMPANY

    That is why….Now you know why?????

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  • bob on Sep 05, 2005 at 5:41 am

    Hmm, I never knew that Petronas has been into engine technology before.

    Now there foreigners who are interested with local technology, good thing.

    Please stop judging the Proton, is not like that we know better than those Proton's managers. Well, there must be some rational reasons why Proton chooses the Clio engine than the Campro and Petronas E01 and we just don't know much about it.

    The E01 is sold to Nanjing a China company, not a European, American, or Japanese company.

    Maybe the when the deal was made the Nanjing knows less than what the Proton knows…………..

    Who knows??!!!

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  • hfrshah on Sep 05, 2005 at 6:01 am

    the 1.3 Campro engine was said to be too big for the Savvy's engine bay, hence the use of the compact Renault engine.

    btw does this mean its the end of the production of the K-Series engines? pity, tho old, those engines were still pretty competitive

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  • E-Nabill on Sep 05, 2005 at 6:12 am

    i heard few reviews about the E01e , i must say atleast on paper , the spec sheet looks awesome,so much power n torque frm a 2litre engine,it was roumoured that wil be sold to proton,bt proton thought its beter to do it with its own resources n with lotus's know-how,probably thy didnt have confidence in petronas n sauber makin the engine,i hate to see these gem of an engine in some crap china car,wat a waste,bt thn again,its smart biz

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  • HANG JEBAT on Sep 05, 2005 at 6:54 am

    HMMM… HOW COME IN EVERY ASPECT OF THINKING, M'SIAN GOVT COMPONY IS ALWAYS SUCK AT DECISION MAKING?! HERE WE GOT A GOOD ENGINE DEVELOPED IN A GOOD HAND OF M'SIAN IR. SURELY & SUPOSSEDLY TO BE USED PROUDLY IN IT GOOD COUNTRY… BUT WHAT A F**K!!! STILL SELL IT TO OTHER COUNTRY SO TO BENEFIT SOMEMORE MONEY?! THE SAME GOES TO OUR BLACK GOLD… OUR'S ARE AMONG THE TOP NOTCH OF QUALITY, BUT WE STILL FILL OUR CARS WITH A 2ND OR 3RD CLASS GASOLINE IMPORTED FROM ANOTHER COUNTRY…. & FROM MY POINT OF VIEW, AFTER ALL THESE YEAR, THIS IS NOT A SMART BIZ ACCEPT FOR THE F**KING CRONIES WHO F**KING RULE THE COUNTRY AS THE WISH… & WE THE POOR RAKYAT WILL ALWAYS FOREVER BE THE VICTIM…

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  • bumboy on Sep 05, 2005 at 3:29 pm

    bob, the reason is simple. proton is dumb and is digging its own grave

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  • AlexC on Sep 05, 2005 at 3:50 pm

    At least China has the sense to purchase something which is good in quality when there is one available… too bad our government sees nothing in our locally built engine… i see great potential with this engine, rather than the campro, which even has much fault and backdated technology…

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  • DOG THE WAN on Sep 05, 2005 at 4:32 pm

    Reasons POTONG not using E01e engine from PETRONAS:

    1) This engine size is too big. (BIG CHANGE ON POTONG GEN2 or ……other model)

    2) POTONG still using Mitsubishi TRANSMISSION, E01e engine might not matching, NEW transmission??? Matilah!

    3) POTONG volume too small, in other worst cost too high to install on POTONG cars. Can use on PERDANA series only?? Sorry lah Perdana only selling in Malaysia not oversea man. Who will buy PERDANA if RM200K.

    4) 2 liter engine on New Sports cars, Sorrylah POTONG don't sell this, only selling Lotus. Need modification on Lotus, too expensive for tooling cost and service cost.

    5) Separe parts issues: CAMPRO already expensive now make another E01e engine on Mass Pro. Lagi cepat MATILAH.

    6) Petronas no experienced on Automotive design same level as POTONG engineers, why paying ROYALTY to someone that you are not sure of his performance on POTONG car? I means Duraility and realiability issue is DOUBT and might be FOOL after install to the car. Nanti you all KUTUK POTONG lagi teruk!

    Don't you all remember PETRONAS owns some POTONG shares too, I think selling the E01e engine to CHINA still not bad idea. Is better BUSINESS for POTONG AND PETRONAS!

    1) Intellectual property: Still OWNED BY Malaysian (PETRONAS engineers), it is like the case of POTONG using Mitsubishi Engine but POTONG will never owned it. Petronas will get ROYALTY.

    2) Making profit: if CHINA cars selling like HELL in CHINA big markets.

    3) Start to testing the engines durability and realiability by CHINESE on the real vehicle not test room, FOC= FREE OF CHARGE. If mati pun orang dia mati.

    4) Service parts will be made by Malaysian or CHINA when the car selling well or Big market available at CHINA later. New business created for Malaysian.

    5) If E01e engine are so good and realiable and Become a well known BRAND, then POTONG can consider to use it or replace PERDANA or SPORTY cars engine instead of Mitsubishi Powerplants.

    6) Malaysian can enter CHINA market easily in the future cause the parts are designed by us. (Petronas R&D at China, Malaysian still can be consultants)

    7) Malaysia BOleh mission also achieved.

    8) Who know CHINA can will enter the US later. Another big market create!

    I do see so many benefits and less negative, if PETRONAS sell E01e to CHINA compare to POTONG! Please give your comments …………

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  • Rave on Sep 05, 2005 at 7:03 pm

    Dog the wan,

    I see that your comments are realistic at times but you seem to have a serious problem in spelling out Proton……hope you amend it..

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  • mitsu_galant_2000 on Sep 05, 2005 at 7:37 pm

    aiya.. dont be so stupid lah people..

    if eo1 engin masuk dalam proton..

    then ramailah malaysian kondemkan pulak pulak enjin buatan petronas tak bagus-lah, buang duit lah..

    u know lah malaysian like you all.. almost condeming our own product..

    but then, when sold to outsider.. u were also condemn.. so dont be forkoff citizen lah!..

    i thought it's a very good decission.. why?

    because on the right way like PM said.. Malaysian : let be a technology maker, selling technologies!.. for a starting it's a really good point.

    in the other view is..

    Almost knew chinese has a very low labour cost, also can decrease any cost realted .. mass production can be done in a few time. SO? if the engine really good, then sold all over the world and CHEAP.. petronas got a credit silently.. then make another engine.. and make more money again..

    Same like mitsubishi, they make more money by selling engine or selling copyright at least.. no need to etc etc etc.. just sell it..

    that's my personal opinion that not like anothers.. Those alway condeming all decission without THINKING OUTSIDE OF THE BOX!..

    // i'm very sre.. if ocal company used this engine.. = you say them stupid to believe this engine.. if proton buy it = u said, stupid proton.. buying engine tech even they got their own.. So why must we angry while EO1 sold to china HUH!..

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  • mitsu_galant_2000 on Sep 05, 2005 at 7:40 pm

    agreed with dog the wan..

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  • Apai Mau on Sep 05, 2005 at 8:55 pm

    I certainly agree with dog the wan & mitsu_galant. Remember if you invent something n then sell it u still have the patent rights of the item u invent. Same like the copyright u see on artists punya album.

    Which means proton still can get untung provided that petronas still hold some shares as dog the wan has mentioned. Hopefully its true.

    N btw China rite now is getting very aggresive in marketing. Remember the cheap textile crisis that affected western markets some months ago? Cheap textile from china?

    If china can do that to the e01 engine, hmmm………

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  • tai on Sep 05, 2005 at 9:32 pm

    I politely disagree.

    P1 embarked on their own project for engine design and development, and had already invested money in nurturing their own talents, resources, etc. The E01 is an indirect fruit from Petronas' F1 involvement, developed by malaysian engineers with Sauber Petronas Engineering (in the year 2000!).

    Logically, Petronas had went to P1. Unfortunately, P1 let ego and pride get in the way of rationale. Can you imagine the shame of using a non-car manufacturer's design? Especially when you hadnt designed or produced any significant car-related product yourself? Shy la. So P1 did tell Petronas that they ll do it on their own.

    And that, is the crux of it. It is unorthodox for an oil & gas co to develop an engine. It is even more uncommon, for it to have a good one.

    For a major manufacturer to admit defeat and swalllow pride, it ll take a very rational and sensible mind, with a lot of humility to boot.

    P1 as we know, is not one of those just yet. Well at least it wasnt 5 years ago.

    What scares me is this – if a China corp (this is a fiercely competitive frontier lest you forget) thinks an engine designed 5 years ago, from a Malaysian oil & gas co is good enough, this Petronas E01 must be pretty damn decent…

    (economics of money aside.. ok la argue its cheap la but heck can buy cheap in a lot of places. like buy a Campro:))

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  • Joe on Sep 05, 2005 at 10:01 pm

    agree, buisness is buisness, engine actual testing(but if not mistaken it has already been done on satria and perdana in 99 till 01) and soon, but china in the other hand as you all know is quite well known on 'ciplak'ing things. Companies try to sue them on this matter but find it just useless because their gov protected them. Maybe this is something to worry about?

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  • Verne on Sep 05, 2005 at 11:04 pm

    I believe the E01 is a high performance engine. 100bhp/litre is very high output. Proton embarked on its own engine development project with the CAMPRO, and Petronas on the E01 prototype.

    Weighing the pros and cons, E01 is understood to be expensive and not commercially viable, despite its performance.

    I believe Nanjing will extract EO1 technology to be used in the design of its own series of engines and not the E01 in whole, not outright.

    I am still unsure why people have the perception that the CAMPRO is a lousy engine. Based on what facts?

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  • Andrew on Sep 06, 2005 at 12:02 am

    To Verne

    CAMPRO is lousy. Reason?

    The engine bears the name CAMPRO, but its selling point (CAM shift PROfile) is not in there!

    That's why!

    I agree with what Dog The Wan says. In business, it is a DOG eat DOG world. After all, profits come first than ANYTHING.

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  • DOG THE WAN on Sep 06, 2005 at 12:17 am

    Hello Rave! Thank you for your support and correction. Sorry I like to KEEP it as POTONG caused it is my Trade Mark! Also, You all still can read and understand what I means!!

    Furthermore I am not POTONG FANs cause I am Neutral…………. manl!

    Only comments something based on facts and Logic…. Okay?

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  • Rave on Sep 06, 2005 at 12:36 am

    dog the wan,

    thanks man…..thats uour identity…no prob…keep up the good work

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  • stupid rafidah on Sep 06, 2005 at 12:36 am

    stupid stupid plotong

    good engine dun want output almost like k20a got dohc vvt lagi

    f1 technology lagi

    ahduh ngoknya,since plotong have ability for mass production this product would have been cheap and can install under our hoods

    ego lah see now whats the state of proton making so much loses eventhough got so many gov protection

    i suport u dog the wan campro too loud lah on high revs

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  • Rave on Sep 06, 2005 at 12:38 am

    another one…….

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  • hfrshah on Sep 06, 2005 at 1:53 am

    the E01 is an engine designed for high performance. 200bhp from a 2.0 liter NA engine is very impressive, yes, thats obvious. even the current Civic Type-R's 2.0 liter VTEC produces 'only' 197bhp..

    but the Honda engine is using current technology, the same cant be said of the E01. the first E01 was done by 1998.. thats years back.. to achieve the 200bhp mark, surely some compromise have been taken..how sure are you that the E01 is reliable? even if it is, what about the maintenance? and ultimately the cost of the engine itself must be high.

    point is, Proton have their own reasons in not using this engine. maybe its pride, cost, or even politics, but that doesnt matter coz thats the past. the current matter is, Petronas has sold the engine, thus the development cost is not entirely a waste, and Proton itself is already making their own engines, and maybe, a big MAYBE here, future Campros will be good

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  • Belut on Sep 06, 2005 at 11:29 am

    Engine Campro belum wujud lagi.. tiada!

    Hanya logo di Gen.2 sahaja yang tulis benda tu..

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  • mitsu_galant_2000 on Sep 06, 2005 at 7:14 pm

    belut..

    ko nih menulis tanpa ilmu lah..

    duk bawah tempurung ke?

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  • Crusifie-X on Sep 06, 2005 at 10:19 pm

    Setuju dgn mitsu_galant_2000!

    Duh!!! Belut menulis main sedap mulut je. At least gunakan internet untuk timba ilmu. Aku yang duduk kat Brunei ni dah hampir 5 tahun boleh tau plak, tp aku Malaysian la.

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  • teslarage on Sep 06, 2005 at 10:45 pm

    LOL!

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  • Nerd on Sep 07, 2005 at 1:34 am

    I always want to see that engine goes into Malaysian's cars. This really sad me….warghhhhh………

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  • Just me on Sep 07, 2005 at 4:25 am

    E01 Engine emmm…Good looking engine..But I don't think it's a production intent engine. Carbon fibre engine cover, chrome intake & Titanium exhaust manifold..How much it will cost. Must be RM20,00 alone without the transmission…Just imagine if Proton to use the engine, how much is the selling price of the vehicle ????…Based Gen + RM30,000 maybe..Do we want to pay RM80K for Gen2.. My friend told me that the liner is nikasil plating…Expensive and not proven for mass production engine…High revvs engine means more fuel consumed…Rm 1.60/litre now and counting…garu kepala…..

    All I can see in the engine is nice to have but not viable for production..Perhaps, they have to decontent the engine to suit the business case..But to what level ??? CamPro maybe…

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  • moo_t on Sep 07, 2005 at 6:48 am

    It seems nobody care to check Paul Tan orignial E01 specification. The engine is make up of ALUMINIUM.

    Not many car engine is make up of aluminium, the cost. Alunimium cast is totally different than steel cast. In addition, this engine will not meet economical scale and there is no current Proton related production line is making alumium engine. (Don't you notice that the heavy money losing Perwaja are suppose to be main steel supplier for protons, including those steel engine mount?)

    So case close. Please stop complaining why proton don't do this and that!

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  • Sequence IIIG on Sep 09, 2005 at 5:59 pm

    Guys,

    No one has sold or bought anything yet. There has no contractual binding either parties to anything. They've only signed a letter of intent (LOI) simmilar to an MOU. As far as I know, it is not a contract i.e. a legaly binding document that means each party has promised to do so and so… I think smaller, detailed deals/contracts between PETRONAS, NAC and BCG will follow once they've agreed on what they want out of this partnership. As far as I'm concerned this is just a political parade since Najip was visiting China at the time. Last time i heard from my friend in PETRONAS (last Tuesday) who is in the EO1 design team, no clear result out of the signing has filtered down to the Engineers themselves. This might mean that the signing was just a political exercise and the details have not been worked out yet. But he did confirm that they are looking into adapting the EO1 technology to come up with a 1.8l and 2.2l engine, probably by re-stroking the engine.

    One thing is for sure. It's not all about money. PETRONAS has already spent the money on development and they are not intending to get the development cost back. It's part of PETRONAS' social obligation to help develop Malaysian's and now we have the capability to design and develop engines. We still can't build complete engines and PETRONAS does not intend to become an engine maker/assembler. It is not our core business. Therefore the natural step is to comercialise the technology and use the royalty gained from that to further develop our engineer's capabilities and know how with more development. That's how I see it. As to why Proton did not use the EO1 engine, the official reply from the head of powertrain at Proton is that it's just plain too expensive and proton's 2 litre volume is microscopic! They rarely sell more than 8000 Perdana's a year, hardly enuf to make the engine cheap enough. As for political conspiracies, i reckon a little bit of much of what has been said might be true. Only TM (Tengku Mahaleel) would know the whole truth i guess. At the end of the day, lets just all hope that this signing of the LOI will lead for great things ahead, both for our nation and our much controversial Auto industry.

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  • shumacher on Sep 14, 2005 at 2:38 pm

    it look nice when the engine fitted to the potong waja,

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  • Osman on Sep 25, 2005 at 2:52 am

    Sequence IIIG, brilliant.

    Others cool off, and remember the nation needs 200,000 Scientists and Engineers only out of 25 million population or 60 out of 10,000 Labour/Workforce. So, go ahead and study MATHEMATICS to develop more technology to be proud of.

    MATHEMATICS is the mother of Engineering, Science Technology, you name it.

    Happy to be Malaysian Admirer

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  • gorgon on Oct 08, 2005 at 2:46 am

    hello guys…

    dunno what driven me into tis so called blog…but a very interesting yet beneficial discussion…however got doubt and wish you guys could give opinion…

    1-is it really expensive to put that EO1 into proton cars?..rough estimation maybe?

    2- is it feasible to put the EO1 engine into proton?…in term of market etc?

    3- if let say proton did agree to dump EO1 into proton cars, will the malaysian buy them?…

    i guess thats all for now..hope to hear a reply from you guys….cheers

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  • anas on Nov 10, 2005 at 7:21 pm

    why is proton not using E01 engines?

    1. most proton cars use mitsubishi engines and gearbox, meaning if they're going to use E01, they must develop a new gearbox, and i tell you, we don't have the experience in gearbox design, this is confirmed by an IR in a local university, my lecturer, he conceded that although we send our engineers to mitsubishi japan, the japanese only let them see how the gearbox is designed, but not teach them anything!

    2. the cost of proton cars would be astronomical. proton is a company aiming to produce cars affordable to malaysians, remember?

    3. also, if proton and petronas decide to work together developing the engine, they have to start from scratch, designing the chassis, engine mounting, gearbox and all that matters. ingat senang ke nak buat sebuah kereta??

    but the important reason is gearbox, as the major problem with malaysian cars is always the gearbox.

    oh, savvy is installed with the auto-manual transsmission. any review on that??

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  • virus on Dec 20, 2005 at 2:20 am

    rugi tul proton ni bodoh sombong

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  • ralliart on Jan 06, 2006 at 12:20 am

    Guys, why no E01 engine in protn cars ? answer = cost estimated value of a single EO1 prototype engine rm 250 k dont ask were i got this just trust me on this ,i seen the engine in few wajas , Satrias , Perdanas as for gen 2 n wira not seen yet ….

    The EO1 engine is design by our local engineers who spent abput 4-5 year making this engine , but it is made in japan . it can easy fit in to any proton car as i mention ealier .i had the pleasure of testing n driving waja n perdana with EO1 engine man do they punch a lot , it takes only 10 mtr to stop from 140km to dead 0 ….

    By the way , if some of u seen the marshall cars used in the F1 IN SEPANG IS POWERED wt the rd/4th generation E01 engine .

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  • v (Member) on May 11, 2006 at 8:14 pm

    What la u all….whats bad with campro?????The Campro engine is aimed to show Proton's ability to make their own engines that produces good power output and meets newer emission standards and recently, Proton is developing their own gasoline direct injection version of Campro engines which will be used in the future. Currently, the Campro GDI engine is still under research and development, therefore very little information available for the Campro GDI engine…so guess what?

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  • haroldz (Member) on Nov 02, 2006 at 12:21 am

    Campro is a good engine.

    But i dun think proton has budget to develop it.

    they are in REDDD now…

    thanks to their BRILLIANT business strategy.

    they even have a top officer who spend more competing in local motoring events than in his office..

    hehehehe

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  • dancing sideways (Member) on Jan 03, 2009 at 10:48 am

    i believe some mentioned cost of the engine, development cost is very normal for a local major manufacturer but cost to build the engine has to be like any other give or take a few higher cost in material quantity, availibility and quality. It is up to the proton to understand how to create a market for it which they completely fail to do it.

    either that or probably there is something we didn’t know about the engine such as reliability. if it were reliable, i would absolutely love to see the engine n the road, it could even have been a cult engine!

    Borneo

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