NIO's JV with JAC has been officially established with registered capital of about $76 million
Jianglai Advanced Manufacturing Technology (Anhui) Co, a joint venture between NIO and JAC, was established on March 31 with a registered capital of RMB 500 million yuan ($76 million), according to information from data provider Qichacha.
The company is jointly owned by NIO Holdings Ltd. and JAC, with the former holding a 49 percent stake and the latter 51 percent.
Its legal representative is Li Ming, and its business scope includes manufacturing, process development, manufacturing management, and operation services for intelligent electric vehicles and components; supply chain management; and R&D and sales of automotive parts.
This is the advancement of the previous plan.
JAC announced on March 4 that it had signed a joint venture letter of intent with NIO to establish a joint venture company.
JAC would contribute RMB 255 million yuan, accounting for 51% of the total registered capital; NIO would contribute RMB 245 million yuan, accounting for 49%, JAC said.
Jianglai's business purpose is to promote the transformation and upgrading of the automotive industry by leading manufacturing with innovation drive and exploring the creation of an innovative business model through in-depth cooperation between the two companies in the field of advanced manufacturing technology services, JAC said.
On March 27, the two companies signed a contract to establish the new company as planned, said Shen Feng, executive vice president of NIO, adding that NIO and JAC will deepen their manufacturing collaboration to optimize operating costs and improve operational efficiency and management capabilities.