Nio gets approval to build 3rd plant in China
Nio has won approval to build a third factory in China, which would boost its total capacity to 1 million vehicles, almost on par with Tesla's Shanghai plant, Reuters said, citing three people familiar with the matter.
The latest approval for the plant, which has an annual capacity of 600,000 vehicles, is a major win for Nio, which was granted a license to build cars late last year, as China's state planning authorities have been wary of approving new electric vehicle production plans since 2022, the report said.
Nio has already begun construction of a third plant -- known as F3 -- but it is unclear when mass production from the site would begin, the sources said.
The F3 plant, located in the city of Huainan in China's eastern province of Anhui, will mainly produce cars for Nio's newly launched affordable car brand Onvo, the sources added.
Nio told Reuters that construction had begun on the third plant, which will have a capacity of 100,000 vehicles on a one-shift basis.
The expansion plan is aimed at meeting the growing demand for cars under the Nio and Onvo brands, as well as producing newly launched cars, the company said in a statement.
"The capacity of our existing plants won't be enough to meet market demand. There is no overcapacity with Nio," it added.
Nio did not acquire its own car-making credentials in its early years and its vehicles were produced by its partner, Anhui Jianghuai Automobile Group (JAC).
The two companies have spent the past few years building two factories in Hefei, Anhui province, dedicated to producing Nio's vehicles -- F1 and F2.
On Oct 19, 2023, JAC released plans to transfer billions of yuan worth of factory assets, which consisted of three asset packages, with the F1 and F2 factories included.
The companies announced on Dec 5, 2023 that Nio would purchase the 2 plants in a deal valued at RMB 3.16 billion (USD436 million) and Nio produce vehicles under its own name.
With Nio's acquisition of JAC's factory assets and full control of the manufacturing process, production costs are expected to drop by about 10%, William Li, Nio's founder, chairman, and CEO, said in a third-quarter earnings call on Dec 5 last year.
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Winner takes all : my god. already lost billions of 100 billons and still expanding how much more money they willing to loss. poor management. the wall street made clear choose, SELL
102332870 Winner takes all : Lol
Charlie O : they're a young growth company that's reinvesting their money....all newer companies do it
Winner takes all Charlie O : hello this is 10 years old company
74216494 Charlie O : Reinvesting ?? Still sucking the money from investors, who belived in NIOs tech. But did not know NIOs "Leading ZERO", unfortunately. Last joke was the questioning of contractors, how NIO could save money. Or the 3rd factory not to build in EU, to bypass any possible tariffs, but in China. Mr. LiE, CEO, "The Leading ZERO", is shorting NIO himself, down into the abyss. To f... honest investors.
Charlie O : I see... short term investors! you guys probably said this about tesla, amazon as well as.other companies in past
Charlie O :
Charlie O :
bullrider_21 OP : With Nio's acquisition of JAC's factory assets and full control of the manufacturing process, production costs are expected to drop by about 10%.