Innovative Canadian automotive manufacturing company Magna International has revealed its intentions of signing two new joint ventures with Beijing Electric Vehicle Co., the Beijing-based BAIC Group’s electric vehicle (EV) subsidiary.
The joint ventures, set to take over BAIC’s existing Zhenjiang facility in the Jiangsu Province, will focus on the manufacturing and engineering of electric vehicles, with initial production planned for 2020, building up to 180,000 vehicles annually thereafter.
“These joint venture operations mark an historic milestone for Magna. For the first time we will be providing our customers with cars engineered and built outside our complete vehicle manufacturing facility in Graz, Austria,” said Don Walker, CEO of Magna International Inc.
“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.”
The joint ventures will build upon the existing partnership between Magna and BAIC, with the two firms having announced in April that they will look to jointly develop next-gen electric vehicle architecture for the Chinese market.
“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,” Mr Xu Heyi, Chairman of BAIC Group, said. “Based on an open and sharing platform, we will jointly develop and manufacture premium smart electric vehicles, bringing the clean energy vehicle industry to the next level.”
It is predicted that this architecture will be transferred to and developed within these newly signed joint ventures.