NIO Holding, JAC Motors to set up joint venture in Hefei

Shanghai (Gasgoo)- The Anhui-based automaker JAC Motors and NIO Holding Ltd. signed on March 4 a letter of intent for the establishment of a joint venture in Hefei, where NIO China is headquartered, according to JAC Motors’ announcement.

NIO China's headquarters in China; photo credit: NIO

Under the letter of intent, both parties intend to deepen their cooperation on advanced manufacturing, management of services and supply chain related to intelligent-connected new energy vehicles.

The joint venture is temporarily named “Jianglai Advanced Manufacturing Technology (Anhui) Co.,Ltd.”. It involves a planned registered capital of 500 million yuan ($77.268 million), 51% and 49% of which were subscribed by JAC Motors and NIO, according to the announcement.

The board of directors will be set up while the joint venture is formally founded. It is set to be composed of 5 members, and NIO has the right to occupy 2 seats. Besides, the chairman should be appointed by JAC Motors.

According to the statement, the joint venture would have a line of businesses including the production, technology R&D, manufacturing management and service operation related to intelligent electric vehicles, the manufacture, R&D and sale of auto parts, as well as the technology consultation and transfer about smart electric vehicles.

The business scope should be finally determined by the operating license.

On Feb. 5, NIO Holdings Ltd., formerly known as NIO (Anhui) Holdings Ltd., the legal entity of NIO China, saw its registered capital increase to 6.167 billion yuan ($952.956 million) from 5.817 billion yuan ($898.922 million), according to the corporate data platform Tianyancha.