Nio to take over two factories from JAC

In the end, things proceeded very quickly: shortly after Nio received certification from the Chinese government as an independent vehicle manufacturer, Nio took over the two joint factories F1 and F2 in Hefei from its previous production partner JAC.

Image: Nio

This was confirmed by Nio in its latest quarterly statement. The purchase price is around 3.16 billion yuan (approx. 412.5 million euros). The takeover of the plants had been on the cards, with initial rumours dating back to October. With the certification as an independent vehicle manufacturer at the beginning of this week (until now, JAC had officially built the Nio vehicles under its license), it was clear that the way was paved for the takeover. Because with the license, Nio can build cars under its own name.

In the rumours from October, it was still said that Nio wanted to invest almost 4.5 billion yuan in the assets of the two factories. The purchase price is now lower. The F1 site has been producing the brand’s electric cars since 2017. The Neo Park industrial park was established in 2021, where the F2 plant was built. This is where the Nio ET5 is built, which is also offered in Europe.

Nio delivered 55,432 electric cars in the third quarter, 135.7 per cent more than in the second quarter of 2023. However, Q2 was the weakest quarter in a long time due to conversion work at the plants – Nio had been stable at more than 30,000 units since Q3 2022, so the 23,520 vehicles in Q2 2023 were a downward outlier. Nevertheless, the manufacturer must now show whether the current record quarter with over 55,000 vehicles was just an upward outlier or whether Nio can maintain or further expand this level. Since the first delivery, Nio has now handed over 431,582 vehicles to customers.

Between July and September, Nio was able to reduce its net loss by 24.8 per cent to around 4.6 billion yuan (579 million euros) compared to the second quarter. The vehicle margin was 11.0 per cent, compared to 16.4 per cent in the third quarter of 2022 and 6.2 per cent in the second quarter of 2023.

“We have recently completed a thorough review of the Company’s two-year operating plans to determine our objectives, priorities, and action plans. Meanwhile, we have identified opportunities to optimize our organization, reduce costs and enhance efficiency,” says Nio founder and CEO William Li. “Our focus remains on advancing core technologies, developing key products, and expanding sales and service capabilities. We are confident in NIO’s long-term competitiveness in the smart electric vehicle market.”


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