Having become a leading manufacturer, Nio does not, however, have its own factories. It could soon buy back those shared with JAC, provided it obtains a production license.
JAC Motors announced that it would sell assets worth several billion yuan. This would include in particular the factories that currently assemble Nio’s electric vehicles in Hefei. Because Nio does not produce its own cars. Faced with the difficulty of obtaining the necessary authorizations, the start-up partnered with JAC Motors from the outset. The start of production in 2018 took place in the form of complete subcontracted production.
In 2021, JAC and Nio formed a joint venture, Jianglai Advanced Manufacturing Technology (Anhui) Co. The latter manages production, in buildings and with a license owned by JAC. This mode of function prevails for the first factory, F1, but also for the giant NeoPark factory, coded F2.
Nio’s electric cars in France are coming soon
Nio is therefore not the owner of its factories, and could therefore take advantage of the sale carried out by JAC to take control of them. But this still requires obtaining a proper license.
The subject of this license remains thorny. It forced many small manufacturers to join forces with more established ones. Hiphi thus produces its vehicles in the Yueda-Kia factories, Xpeng those in Haima. Others buy “zombie” manufacturers. WM Motors had thus bought Polarsun. Niu was forced to terminate its project in the absence of a license. The authorities have only issued six licenses since 2017, the last having been entrusted to Xiaomi.
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