GUANGZHOU – Guangzhou Automobile Group Co., Ltd. (GAC Group) and smart EV startup Shanghai NIO Auto Co., Ltd. signed a strategic cooperation agreement on December 28 to set up a new company to develop smart EVs.
With a total investment of ¥1.28 billion and registered capital of ¥500 million, GAC-NIO New Energy Vehicle Co., Ltd. (tentative name) will focus on the R&D, sales and services of intelligent connected NEVs. GAC Group and NIO will own 45 and 55 percent of the new company, respectively.
“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,” said Feng Xingya, president of GAC Group.
“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,” said William Li, founder and chairman of NIO.
NIO has already cooperated with JAC, Chang’an and GAC and other traditional automakers, and established R&D, design and production organizations in 12 global cities such as Shanghai, San Jose, Munich and London.
GAC Group has comprehensively mastered some key system and component technologies and reached in-depth cooperation with Huawei, Tencent, China Mobile and other companies in the fields of cloud computing, big data and internet of vehicles (IOV) services. By 2020, GAC Group is expected to have more than 20 NEV models.