Nio (NYSE: NIO) and Anhui Jianghuai Automobile Group (JAC) have decided to dissolve their joint venture, as Nio has obtained its independent vehicle manufacturing qualification, eliminating the need to rely on JAC’s qualifications for vehicle production.
The joint venture, Jianglai Advanced Manufacturing Technology (Anhui) Co, is currently in the process of notifying creditors about the dissolution, with the notice period running from June 10 to July 24. This move marks a significant development in Nio’s journey towards self-sufficiency in vehicle production.
The partnership between Nio and JAC was established in March 2021 with the aim of deepening manufacturing cooperation, optimizing operational costs, and enhancing management capabilities. Nio initially held a 49 percent stake in the joint venture, with JAC holding 51 percent. In March 2022, Nio increased its stake to 50 percent, signaling its commitment to the partnership.
Jianglai was responsible for managing the production of Nio vehicles at the F1 and F2 factories. However, with China strictly controlling the issuance of automotive production qualifications to prevent overcapacity, Nio initially produced its vehicles under JAC’s name. Both JAC and Nio brands were displayed on the vehicles’ rear.
In December 2023, Nio achieved independent vehicle manufacturing qualification and acquired the two factory assets under JAC’s name. This milestone allowed Nio to begin fully independent production of its own vehicles, leading to the removal of the JAC brand from the rear of Nio vehicles.
With full control over all core processes of vehicle production, Nio is poised to improve its manufacturing efficiency and gain a competitive edge in the EV market. This strategic shift towards independence reflects Nio’s commitment to innovation and self-reliance in the rapidly evolving automotive industry.
