Magna intends to sign two new joint venture agreements with Beijing Electric Vehicle Co. Ltd (BJEV) for complete vehicle manufacturing as well as engineering of electric vehicles. BJEV, a subsidiary of the BAIC Group for electric cars, and Magna signed the new joint venture agreements in the presence of Wu Zhenglong, Governor of Jiangsu Province and executives from both companies at a signing ceremony held in Nanjing. The joint-venture agreements will govern the operations of the two joint ventures with both Magna and BJEV working jointly with the authorities to execute the project.
Don Walker, CEO of Magna International Inc, said, ” For the first time we will be providing our customers with cars engineered and built outside our complete vehicle manufacturing facility in Graz, Austria. It’s a unique capability for Magna, especially with our ability to produce vehicles with conventional, hybrid and electric powertrains, and we are excited to bring it to a market like China where there is tremendous opportunity.” According to the joint venture agreements, an existing BAIC manufacturing facility with a production capacity of 180,000 vehicles per year located at Zhenjiang, Jiangsu Province will be taken up by the engineering and manufacturing joint ventures to produce the vehicles for 2020. In addition, joint ventures will be set up for complete engineering and manufacturing the vehicles to other customers.
Xu Heyi, Chairman of BAIC Group, commented, “From a strategic point of view, the establishment of the JVs will benefit both Magna and BAIC to further strengthen our business growth in China. We will jointly develop and manufacture premium smart electric vehicles, bringing the clean energy vehicle industry to the next level.”