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JAC plans to transfer the assets of two factories that make vehicles for Nio, which the latter may acquire and seek independent EV production qualification, local media said.
Anhui Jianghuai Automobile Group (JAC) plans to transfer the assets of its multi-billion RMB factories, with Nio (NYSE: NIO) saying the move by its vehicle production partner will not affect its operations.
Meantime, local media are reporting that Nio may buy the assets to qualify for independent electric vehicle (EV) production.
In an announcement last night, JAC said it plans to transfer the plants as well as construction-in-progress assets, which have a net book value of 4.2 billion yuan ($570 million), in a move that won't involve changes in staffing arrangements.
JAC's announcement didn't mention Nio, but local media outlet National Business Daily said in a report today that the plans are two factories that JAC has partnered with Nio – Nio F1 and F2 plants.
Nio confirmed the information in a response to the media outlet and said it would not affect its production and operations.
"The company is aware of the information from its partner and confirms that the move will not affect the company's next production and operational activities," Nio said.
The company will communicate when appropriate and will not comment on the matter until then, Nio said, according to National Business Daily.
A person familiar with the matter said Nio may acquire the assets that JAC plans to transfer and further pursue independent automobile production qualifications, according to the report.
"If Nio can obtain independent production qualification as a result, it will be a major positive thing for it, which will benefit the company's long-term operation and efficiency," the person said.
($1 = RMB 7.3134)