Magna signs its first complete vehicle manufacturing JV in China
The joint venture, to be controlled by an affiliate of the BAIC Group, will manufacture up to 180,000 electric vehicles per year.
Automotive parts maker Magna International Inc. has signed a framework agreement with BAIC Group and the Zhenjiang government for an electric vehicle manufacturing joint venture in Zhenjiang, China, marking another milestone of their continued cooperation.
The transaction, which is pending regulatory approval and other closing conditions, is expected to close in the fourth quarter of 2019.
This joint venture, which is to be controlled by an affiliate of the BAIC Group, represents Magna’s first investment in a complete vehicle manufacturing facility outside Europe, and will combine Magna’s vehicle engineering and manufacturing and BAIC’s local manufacturing, marketing and distribution footprint to support electric mobility in China.
The facility has the capacity of up to 180,000 vehicles per year.
“Magna has proven experience building complete vehicles for customers,” Günther Apfalter, president of Magna Europe and Magna Steyr, said in a statement. “We are excited to work with BAIC to further strengthen Magna’s e-mobility capability in the largest global market for new energy vehicles.”
In June 2018, Magna and Beijing Electric Vehicle Co. Ltd (BJEV), a subsidiary of BAIC Group, announced they would jointly engineer and build electric vehicles for customers in China. In January 2019, the two sides opened a new engineering centre and announced the groundbreaking of a new NEV test centre in Zhenjiang.
The first production of electric vehicles, BJEV’s ARCFOX models, is expected for launch in late 2020. The joint venture will also be capable of offering EV contract manufacturing services to other potential customers, Magna said
Magna is headquartered in Aurora, Ont.
BAIC Group is a Chinese state-owned enterprise and holding company of several automobile and machine manufacturers located in Beijing, China.