- The joint venture between Nio and JAC is being dissolved after Nio obtained its independent vehicle manufacturing qualification in December 2023.
- Nio initially did not obtain its own vehicle manufacturing qualification and instead produced its vehicles under JAC's name.
Nio (NYSE: NIO) and Anhui Jianghuai Automobile Group (JAC) are winding down their joint venture, as the Chinese electric vehicle (EV) maker no longer needs to rely on JAC's qualifications for vehicle production.
Jianglai Advanced Manufacturing Technology (Anhui) Co has filed for dissolution, according to information from the National Enterprise Credit Information Publicity System.
The joint venture is currently in the process of notifying creditors about the move, with the notice period running from June 10 to July 24.
Nio and JAC signed an agreement on March 27, 2021, to establish Jianglai. At the time, Nio's executive vice president Shen Feng said that the move aimed to deepen manufacturing cooperation, optimize operational costs, and enhance management capabilities.
Jianglai was officially registered on March 31, 2021, with Nio holding a 49 percent stake and JAC holding 51 percent.
In March 2022, Nio increased its stake in the joint venture from 49 percent to 50 percent.
Nio and JAC had not disclosed further information about Jianglai in recent years, but the joint venture is believed to be used to manage the production of Nio vehicles at the F1 and F2 factories.
China strictly controls the issuance of automotive production qualifications as part of measures to prevent overcapacity.
Nio initially did not obtain its own vehicle manufacturing qualification and instead produced its vehicles under JAC's name, with both JAC and Nio brands displayed on the vehicle's rear.
In December 2023, Nio obtained independent vehicle manufacturing qualification and acquired the two factory assets under JAC's name, beginning fully independent production of its own vehicles.
Since then, Nio vehicles no longer display the JAC brand on their rear.
