SHANGHAI/BEIJING (Reuters) – Anhui Jianghuai Automobile (JAC) on Tuesday won a bid for assets worth a total of 4.58 billion yuan ($641.2 million) from electric car maker Nio’s Anhui unit and a state-owned enterprise of China’s Hefei government. announced.
Nio will take over some fixed assets and equipment of two factories from JAC for 3.16 billion yuan, and state-owned industrial park developer Hefei Henchuang Intelligent Technology will acquire the buildings and land use rights of one of the factories. Purchased for 1.42 billion yuan. Yuan added in a statement.
Nio confirmed the transaction in an exchange filing. Tsuneso did not immediately respond to a request for comment.
In October, JAC put the assets of Nio’s two factories, known as the F1 and F2 factories, where EVs have been manufactured, up for sale.
Nio previously designed production lines and developed manufacturing technology for factories in-house, but since 2019, a joint venture with JAC has been operating and managing the factory, and JAC mainly employs assembly workers. He stated that he was in charge of hiring.
China’s state planning authorities are restricting the expansion of the auto industry’s production capacity and are reluctant to approve new entrants into the crowded market.
Regulators allowed Nio to manufacture and sell EVs in China in 2018 through a partnership with JAC, and Nio paid JAC fees for each vehicle it produced.
According to data from the China Passenger Vehicle Association, Nio ranked ninth in China with sales of 126,067 EV and plug-in hybrid vehicles in the first 10 months.
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(Editing by Zhang Yan, Brenda Goh, Beijing Newsroom Reporters, Jacqueline Wong and Miral Fahmy)