NIO has signed an agreement and new energy vehicle project deal with Guangzhou Automobile Group (GAC).
The two companies will cooperate in a number of areas including the R&D of intelligent and connected new energy vehicles and manufacturing of automotive parts.
NIO and GAC will establish a new company: GAC NIO New Energy Vehicle, although the name of the operation is subject to change.
Primary operations of the company include R&D, sales and services related to intelligent and connected new energy vehicles. Total planned investment of the company is CNY1.28bn (US$196m) with a registered capital of CNY500m, of which NIO and Guangzhou will account for 55% and 45% of ownership, respectively.
GAC recently released its first multi-purpose vehicle, the GM8, for the Chinese market at an event held at the Mangrove Tree International Convention Centre in Sanya.
The GM8 is developed on GAC Motor’s C-Class platform and measures five metres in length (three-metre-long wheelbase).