Guangzhou Armada Development Co., Ltd signed an agreement with US-based Eaton Corp to promote the latter's hybrid power system for city buses in Guangdong province and Chongqing municipality. Guangzhou Armada is a private firm with more than 5,500 buses in Guangzhou, Chongqing and Guilin, while Eaton Corp is a leading provider of diesel-electric hybrid power systems for trucks and buses and is also a pioneer in hydraulic hybrid power system technologies for use in refuse trucks, delivery vehicles and buses among other things.

"Operating the buses with Eaton's hybrid power system has demonstrated improved fuel economy and significant environmental benefits," said Zhang Weixiong, chairman of Guangzhou Armada and Guangzhou No. 1 Bus Co., Ltd. "We intend to expand the use of hybrid power in our fleet to take greater advantage of this clean energy source."

City buses with the hybrid power system can save about 60 percent of fuel and reduces emission by 25 percent compared with those fueled by LPG.