Changan and Nio have announced their plan to found a joint venture named Changan Nio New Energy Vehicle Technology. The goal is to set up a new brand, which will develop and market battery-electric and hybrid vehicles in China.
Both companies plan to take a 45% ownership cut of the joint venture. The other 10 percent are planned to be held by the board. Yang Fang will take over as CEO of the venture. Nio founder William Li will be chairman, while Changan’s executive VP Li Wei will be vice chairman.
The developed vehicles will be marketed under the Changan label or possibly a new branding, however so far few details to their plans have surfaced and neither company has announced just how much they will be investing in the venture.
The new venture will allow Nio and Changan to provide technology and services to third parties for new energy vehicles. At the start of the year, Nio had teamed up with Guangzhou Automobile Group (GAC). The cooperation is planned to encompass a number of areas, including research and development of networked vehicles with electric and hybrid motors, as well as cooperative component manufacturing. GAC owns 45% of their joint venture, while Nio owns the other 55%.
Outside of their business ventures, Nio is not doing great at the moment. Their attempt to gather additional funding by entering the stock market in the USA has revealed that the company is struggling far more than expected: only 17,000 orders have been placed, of which the majority, 12,000, are fully refundable. Nio was also forced to admit that if all orders actually came through, it would take “6 – 9 months” for the company to actually deliver.