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Chinese electric carmaker NIO and JAC Motors signed an agreement on March 27 to establish the Jianglai Advanced Manufacturing Technology (Anhui) Co (江来先进制造技术(安徽)有限公司) as planned.

Jianglai is a company that provides advanced manufacturing technology and operation management for complete vehicles and components.

NIO and JAC will deepen manufacturing cooperation to optimize operating costs, improve operational efficiency and management capabilities, said Shen Feng, executive vice president of NIO, on Monday.

Jianglai will explore and develop new business capabilities to achieve more in the smart electric vehicle sector, he said.

JAC board chairman An Jin and NIO founder William Li participated in the signing ceremony.

The move is the execution of a plan made earlier this month.

On March 4, JAC said it signed a letter of intent today with NIO Holdings Ltd. to set up a joint venture.

The company, to be located in Hefei, was tentatively named Jianglai Advanced Manufacturing Technology (Anhui) Co. The name takes the first character of JAC's Chinese name and the second character of NIO's Chinese name.

The company planned to have a registered capital of 500 million yuan ($77 million ), with JAC contributing 51 percent and NIO 49 percent.

The company's board of directors will consist of five directors, three to be appointed by JAC and two by NIO. The chairman will be appointed by JAC and the vice-chairman will be appointed by NIO.

The joint venture will build a new ecology of "advanced manufacturing + industrial internet" with automation, networking, and platform, relying on industrial internet and manufacturing management experience, JAC said.

The purpose of the joint venture is to integrate the advantages of JAC and NIO in manufacturing, production operation, quality control, supply chain management, to serve the manufacturing operation of products scientifically, JAC said.

The business scope of the joint venture includes manufacturing, R&D, and sales of electric vehicles and components; supply chain management; technical consulting, and personnel training related to intelligent electric vehicles.

Over the past five years, NIO and JAC have worked together to build one of the most advanced vehicle production sites in China.

Since 2019, NIO has reigned as the top new vehicle quality brand for pure electric vehicles in the China New Energy Vehicle Experience Study released by J.D Power.