Magna has announced the formation of two new joint ventures with the Beijing Electric Vehicle Company (BJEV) for the manufacture of complete electric vehicles, as well as for the engineering of EVs. BJEV, a subsidiary of the BIAC Group, and automotive supplier and contract manufacturer Magna will implement legally binding joint venture agreements to govern the operation of the new business entities.
The engineering and manufacturing joint ventures are expected to take over an existing BAIC manufacturing facility in Zhenjiang, Jiangsu Province, where the first production vehicles are planned for 2020. The plant has the capacity to build up to 180,000 vehicles per year.
The joint ventures will also offer engineering and complete vehicle manufacturing capacity to other potential customers.
“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,” says Don Walker, CEO of Magna International. “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.”
“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” adds Xu Heyi, chairman of BAIC Group. “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.”
In April 2018, BAIC Group and Magna announced they would jointly develop a next-generation smart electric vehicle architecture for the Chinese market. It is expected that this vehicle architecture will be transferred to the engineering joint venture and will form the platform for the new EVs to be launched under the joint venture.