ZHENJIANG, Jiangsu – Beijing Electric Vehicle Co., Ltd. (BAIC BJEV) and Magna opened their technology joint venture – Magna Blue Sky Technology (Zhenjiang) Co., Ltd. – here on January 15, and broke ground for a new energy vehicle test center nearby.
The milestone comes about seven months after the two partners signed the term sheets on June 18, 2018 to form two new JVs for complete vehicle manufacturing as well as engineering of electric vehicles.
Both the technology JV and the manufacturing JV will utilize Magna Steyr’s expertise in engineering development and BAIC BJEV’s market experience to jointly develop a new generation of smart EV platform, which will be the basis for BAIC BJEV’s upcoming ARCFOX high-end EV brand that will be officially launched at this year’s Geneva Motor Show. The technology JV, which will have about 420 employees, will also offer EV engineering and development to other potential customers in addition to BAIC BJEV.
“We are very happy to provide advanced engineering solutions through this joint venture with BAIC BJEV and to promote development in China’s electric vehicle mobility space,” said Karl-Friedrich Stracke, President of Automotive Technology & Engineering at Magna Steyr. “This joint venture is the starting point of our cooperation, and the development of the first vehicle project will provide support for electrification strategies of both partners.”
“Integrated development and coordinated innovation are crucial in this new era for the auto industry,” said Zheng Gang, president of BAIC BJEV. “After numerous years of development, BAIC BJEV now owns core technologies, mature product structure and leading market position in the battery electric vehicle space. With technologies and experience from Magna, BAIC BJEV is expected to get a major boost in terms of quality upgrading and brand elevation.”
The NEV Test Center, totaling about 12,000 square meters, is expected to be put into use in September.
The first ARCFOX model is expected to roll off at the manufacturing JV, which has the capacity to build up to 180,000 vehicles a year, in 2020.
In April 2018, BAIC Group and Magna announced they will jointly develop a next-generation smart EV architecture for the Chinese market. It is expected that this vehicle architecture will be transferred to the technology JV and will form the platform of the new EVs to be launched in manufacturing JV.