GAC Group teams up with NIO to establish NEV JV

Shanghai (Gasgoo)- GAC Group announced on the evening of Dec. 27 that it will team up with NIO to jointly establish a new JV, GAC NIO New Energy Automotive Co., Ltd. Besides, they plan to build up a JV on carsharing and vehicle leasing areas. The both parties also intend to cooperate in core parts, aiming to set up a JV in R&D and manufacturing of powertrains and intelligent electronic appliance. What's more, they can buy each other's shares under suitable business conditions.  

With a total investment of RMB 1.28 billion (about $195 million), the GAC NIO New Energy Automotive Co., Ltd. will be dedicated to the R&D, sales and services of intelligent connected NEVs. 

The total registered capital of the new JV will be RMB 500 million (about $76 million), while the registered capital of first period will be RMB 200 million (about $30.5 million). Both GAC Group and GAC New Energy Automotive Co., Ltd. will invest RMB 45 million (about $6.8 million) to take 22.5% stake of the new JV.

According to the announcement, both parties will make full use of their advantages in talents, resource, technologies, and capital to conduct comprehensive cooperation in all aspects of industrial chain, including resource integration of NEV R&D, manufacturing, supply chain, sales service system and leasing operation mode. They will also cooperate in core parts sector, relevant sales and service channel resource, brand promotion, big data analysis, software development and application as well as connected cars and autonomous driving, etc.