The move also has an NIO stake in Jianglai, which has car manufacturing credentials, similar to JAC’s, and that means it has a greater opinion on the two jointly built plants.
NIO will increase its 50% stake with JAC in its joint venture
NIO (NYSE: NIO, HKG: 9866) has increased its stake in the joint venture with self-production partner Jianghuai Automobile Group Co (JAC) a year after the founding of the new company.
NIO’s joint venture with Jianglai Advanced Manufacturing Technology (Anhui) Co, JAC, saw a change in its shareholder information on March 14, according to data shown on the data platform Quiccha.
The registered capital of the joint venture increased from RMB 245 million to RMB 255 million by 4.08 per cent and NIO’s shares rose 50 per cent from the previous 49 per cent.
Jianglai’s business range has previously been expanded to a range of materials, including smart electric vehicle manufacturing and supply chain management, including automotive manufacturing.
NIO will increase its 50% -CnEVPost stake with JAC in its joint venture
The move is leading the NIO to a greater statement about the plant that was jointly built with JAC.
On March 4 last year, JAC said it had signed a letter of intent with NIO to establish a joint venture company Jianglai, which would take the first letter of Chinese name and NIO’s Chinese name.
Jianglai’s projected registered capital was RMB 500 million, with JAC contributing 51 percent and NIO 49 percent.
On March 27 last year, NIO signed an agreement with JAC to establish the company. The two companies deepen manufacturing cooperation to optimise operating costs and improve operational efficiency and management capabilities, Shen Feng, NIO’s executive vice president, said at the time.
He said Jianglia will tap into new business capabilities and develop to achieve greater reach in the smart electric vehicle space.
Jianglai was officially established on March 31 last year with a registered investment of RMB 500 million, 49 percent from NIO and 51 percent from JAC.
NIO’s vehicles are manufactured in a factory built with JAC in Hefei, Anhui Province, rather than obtaining its own vehicle production status as some new car manufacturers have done. A new plant is being built at Hefey’s Neopark.
The latest move means that NIO has the same stake in Jianglai with car production credentials as JAC, which probably means the company has a greater say in the plants where the two work together.
After JAC introduced plans to install a joint task with NIO in early March, it sparked a hypothesis that the latter might input the mass market.
Subsequently, the financial media observer of the local media, referring to the unnamed NIO insider, said the purpose of establishing a joint venture was to use the first NIO JAC at the production site to be in charge of the day-to-day management and operation.
NIO confirmed on August 12 last year that it would enter the mass market through a new brand.
sources CnEVPost / NIO & Jack