On February 25, the signing ceremony of Anhui province’s major industrial project took place at the JAC-NIO production base in Hefei. Out of the 8 major industrial projects selected, Chinese EV maker NIO received more than 10 billion yuan in government investment, and announced the launch of new China headquarters in Hefei. In the meantime, mass production of the JAC-NIO EC6 model officially kicked off in Hefei’s JAC-NIO factory. EC6 will be the third model the JAC-NIO factory has produced since the cooperation of the two parties started.
The two sides have promoted cooperation on the industrial chain of new-energy vehicles and intelligent internet-connected vehicles since 2016. Subsequently, the intelligent high-end electric manufacturing base jointly built by JAC and NIO went into construction in October of the same year and was officially put into use in the second half of 2017. The JAC-NIO manufacturing base is located in mid-China’s city of Hefei. The plant is projected to produce 100,000 EVs a year.
NIO has suffered from large financial losses over the past few years. According to its 2019 Q3 Report, the company had a cumulative loss of 40.345 billion yuan from 2016 to the first half of 2019. Over the past year, NIO’s stock price went down over 45%. Before receiving funding from Hefei authorities, NIO was rumored to have negotiated investments with government backed Beijing E-Town Capital and Zhejiang Wuxing District government. Chinese automotive companies GAC group and Geely Auto were also reported to have intentions to inject funds.
Founded in November 2014, NIO is a leading Chinese premium electric vehicle manufacturer. On September 12, 2018, NIO was successfully listed on the New York Stock Exchange. JAC Motors is a Chinese state-owned automobile and commercial vehicle manufacturer.