Magna to produce up to 180,000 electric vehicles per year in China for BAIC, starting in late 2020
The partnership between BAIC Group and Magna in China deepens as the two – with a blessing from the Zhenjiang government – agreed on a complete vehicle manufacturing joint venture.
According to a framework agreement, Magna for the first time will start complete vehicle manufacturing outside of Europe. The new joint venture will have a capacity of up to 180,000 cars annually and the first electric cars will be launched in late 2020.
The agreement envisions also an option to offer EV contract manufacturing services to other potential customers.
“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 unique 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 already is manufacturing in Austria the all-electric Jaguar I-PACE and plug-in hybrid BMW 530e iPerformance.
The most recent press release doesn’t reveal which models will be produced by Magna, but maybe it will be ARCFOX from BJEV (BAIC’s electric vehicle subsidiary) also expected in late 2020.
“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.”
Source: Magna
Magna Celebrates the Signing of Its First Complete Vehicle Manufacturing Joint Venture in China
- JV to have capacity of up to 180,000 vehicles per year
- First production of electric vehicles planned to be launched in late 2020
- Capability to offer EV contract manufacturing services to other potential customers
ZHENJIANG, China, July 24, 2019 — Today Magna, BAIC Group and the Zhenjiang government celebrated the signing of a framework agreement governing their electric vehicle manufacturing joint venture in Zhenjiang, China, which marks another milestone of their continued cooperation. Executives from both companies and Zhenjiang government officials attended the celebration. 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 unique 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,” said Günther Apfalter, President of Magna Europe and Magna Steyr. “We are excited to work with BAIC to further strengthen Magna’s e-mobility capability in the largest global market for new energy vehicles.”
“BAIC’s long-term strategy, an open and sharing philosophy, and a collaborative and innovative mindset leads us toward the top partners like Magna,” General Manager of BAIC Group Mr. Zhang Xiyong said at the ceremony.
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.