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December 29, 2017

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Home » Business » Auto

GAC, NIO form JV to collaborate on NEVs

By Hu Yumo | 00:01 UTC+8 December 29, 2017 | Print Edition

Guangzhou Automobile Group Co (GAC) and Shanghai-based electric carmaker NIO will set up a joint venture to collaborate on intelligent cars and new-energy vehicles.

The two companies yesterday signed an agreement for the joint venture which will have a registered capital of 500 million yuan (US$76.5 million). The venture will focus on research and development of smart and new-energy vehicles, according to a statement from GAC.

GAC and NIO each own 45 percent of the joint venture. The management team of the new company will take the remaining 10 percent, the two partners said.

“We believe the joint venture will fully tap advantages of both sides, as NIO has deep research capability in the field of Internet and GAC has advantages in traditional automotive industry and vehicle manufacturing industry chain,” said Feng Xingya, general manager of GAC.

William Li, founder and chairman of NIO, said: “In future, we will further cooperate with each other on sharing of technology, research and development resources, supply chain and manufacturing resources. Both parties will also share resources to enter global markets and infrastructural facilities of electric vehicles.”

The new company will not be involved in manufacturing. A factory, set up by GAC in Guangzhou, will be completed by the end of next year and will make new-energy vehicles developed by the joint venture.

According to the statement, the two companies also intend to collaborate on car sharing and car leasing business in future and to cooperate in auto parts.

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