NIO and GAC Sign New Energy Vehicle Project Agreement and Announce New Company
December 28 - NIO has signed a strategic cooperation agreement and new energy vehicle project agreement with Guangzhou Automobile Group Co., Ltd (GAC). According to the agreements, the two companies will cooperate in a number of areas, including the R&D of intelligent and connected new energy vehicles and manufacturing of automotive parts, and operations.
NIO and GAC announced they will found a new company: GAC NIO New Energy Vehicle Co., Ltd. The name of the company is subject to change. Primary operations of the company include R&D, sales and services related to intelligent and connected new energy vehicles. Total planned investment of the company is RMB 1.28 billion with a registered capital of RMB 500 million, of which NIO, Guangzhou Automobile Group Co., Ltd. will account for 55% and 45% of ownership, respectively.
Feng Xingya, President of GAC stated, “Establishing joint ventures was the primary mode of cooperation in the past, but today we are co-founding a startup with an innovative business model and mode of operations.”
NIO Founder and Chairman William Li said, “Since NIO’s founding we have strongly believed in developing win-win partnerships. We are very proud to be developing a new relationship with a large automotive group like GAC. The establishment of the new company will revolutionize the whole industry. Today is truly a special day for China’s smart electric vehicle industry.”