MONTGOMERY — The next step toward the realization of Hybrid Kinetic Motors' state-of-the-art Bay Minette plant took place Tuesday at the Renaissance Hotel and Conference Center in Montgomery as HK executives signed a contract with Italdesign Giugiaro, an Italian automotive design company.

The two companies also unveiled the Quaranta, a prototype hybrid car developed by Italdesign Giugiaro to celebrate its 40 years of automotive design and technology. The car was introduced at the 2008 Geneva International Motor Show, but made its North American debut Tuesday.

"The Quaranta is a 156 mph supercar powered by a hybrid system and represents the state of the art of many years' research into hybrid vehicles, including the Biga and Lucciola in 1992, the Alessandro Volta in 2004 and the Namir in 2009," Fabrizio Giugiaro, co-chairman and styling director of Italdesign Giugiaro, said.

In September 2009, the Pasadena, Calif.-based HK Motors announced its intentions to build a $25 million plant on the mega site industrial park north of Bay Minette, with plans to produce hybrid family vehicles, including a sedan and SUV, among others.

"On Sept. 24, 2009, we made a joint announcement with (Alabama) Gov. (Bob) Riley and HK Motors. Today it is good to be back to Sweet Home Alabama to announce another milestone with the signing of this contract," HK Motors CEO Chuantao Wang, said.

Italdesign Giugiaro, led by Chairman Giorgetto Guigiaro, has designed vehicles for internationally known leading car companies for more than 40 years, including such renowned automobiles as the Alfa Romeo Spyder, the Lexus GS 300 and the short-lived DeLorean.

"We have chosen Italdesign Guigiaro in view of its more than four decades' expertise in the field of integrated services to the automotive industry, from styling research and engineering to production start-up through prototyping and testing," HK Motors Vice Chairman Charles Huang said.

Italdesign Guigiaro will be in charge of styling, engineering, testing, prototyping and production support, as well as coordinating all the suppliers involved.

This is not the first business venture between the two companies, having collaborated on a sedan for HK Motors' Chairman Yung "Benjamin" Yueng's China-based company, Brilliance Group.

"Cooperation between the group founded by Giorgetto Guigiaro and the HK Motors Chairman Benjamin Yueng dates back to the 1990s when the former designed and developed the Zhonghua sedan for Brilliance Group," Huang said.

Yeung's new foray into the automotive world aims at a more fuel-efficient, environmentally friendly vehicle "without compromising driving performance, ride comfort or competitive prices," according to HK Motor's customer satisfaction statement.

"The new generation of hybrid vehicles will have a significant impact on the automotive industry," Huang said. "You are witnessing a historic moment for our company and the United States automobile market."

He said the car will run on what he called a "3 in 1" technology. "It will have an alternative engine, with natural gas as the primary fuel, battery power and gasoline as an emergency fuel," he said. "We have developed a vehicle that has a five-star safety rating, 40 mpg energy efficiency, incredibly quiet and runs zero to 60 mph in 4.5 seconds."

Huang said production of the new hybrid car, which uses compressed natural gas as the primary fuel, is slated to begin production in 2013 with an initial output of 300,000 units. Initial estimates put the number of jobs created at close to 6,000.

As the first start-up automotive company in Alabama, Riley said HK Motors is not only forging new roads in hybrid technology, but will help change the economic future of Alabama.

"(HK Motors and suppliers) will change what we do to our economic model, not just for Alabama, but for the region," Riley said. "Just a few years ago Alabama did not have any car plants. This year we will produce 850,000 cars. HK Motors will play a vital role, not just in production, but with the next car for the next generation."

Neal Wade, director of the Alabama Development Office, said recent projections put Alabama and the U.S. recovering from the economical slump in the next few years, with auto makers such as HK Motors playing a significant role in the upswing.

"At the Second Annual International Business Conference the projections for the Alabama economy and the U.S. economy showed vehicle sales could move back into the $14 million range by 2012-2013," Wade said. "HK Motors will help."

He said some residents have indicated doubt the HK Motors plant will come to fruition.

"There has been a little bit of skepticism, but when we sat down with the HK Motors team in Pasadena, they showed they are moving forward," Wade said. "We are very positive of how we approach this."

HK Motors' executives will speak at the North Baldwin Chamber of Commerce's Annual Meeting tonight.