Magna and the BAIC Group have signed a framework agreement governing their electric vehicle manufacturing joint venture (earlier post) in Zhenjiang, China, which marks 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. It will combine Magna’s complete vehicle engineering and manufacturing expertise 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. We are excited to work with BAIC to further strengthen Magna’s e-mobility capability in the largest global market for new energy vehicles.—Günther Apfalter, President of Magna Europe and Magna Steyr
In June 2018, Magna and BJEV announced they would jointly engineer and build premium electric vehicles for customers in China. In January 2019, the two sides celebrated the opening of a new engineering center and announced the groundbreaking of a new NEV test center 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.