NIO Announces Renewal of Joint Manufacturing Arrangements
May 24 2021 - 4:05AM
NIO Inc. (“NIO” or the “Company”) (NYSE: NIO), a pioneer and a
leading manufacturer of premium smart electric vehicles in China,
today announced that it has entered into manufacturing agreements
with Jianghuai Automobile Group Co., Ltd., or JAC, and Jianglai
Advanced Manufacturing Technology (Anhui) Co., Ltd., or Jianglai,
regarding the joint manufacturing of NIO vehicles and related fee
arrangements. JAC is a major state-owned automobile manufacturer in
China that currently manufactures the NIO vehicles in delivery,
including the ES8, ES6 and EC6, in the Hefei JAC-NIO manufacturing
plant designed and constructed for NIO vehicles. Jianglai is a
joint venture for operation management established by JAC and NIO
where NIO holds 49% equity interests.
Pursuant to the joint manufacturing arrangement,
from May 2021 to May 2024, JAC will continue to manufacture the
ES8, ES6, EC6, ET7 and potentially other NIO models in the
pipeline. In addition, JAC will expand its annual production
capacity to 240,000 units (calculated based on 4,000 work hours per
year) in order to meet the growing demand for NIO vehicles. NIO
will be in charge of vehicle development and engineering, supply
chain management, manufacturing techniques, and quality management
and assurance. Jianglai will be responsible for parts assembly and
operation management.
The fee arrangements consist of the following:
(i) asset depreciation and amortization with regard to the assets
JAC invested and to invest for the manufacture of NIO models as
actually incurred, payable monthly and subject to adjustment
annually; (ii) vehicle production and processing fees recorded on a
per-vehicle basis, payable monthly and subject to adjustment
annually; (iii) certain compensatory arrangement; (iv) relevant
tax; and (v) purchase amount of certain production materials. The
new agreements allow NIO to benefit from economies of scale and
manufacturing efficiency improvement in the future.
About NIO Inc.
NIO Inc. is a pioneer and a leading manufacturer
of premium smart electric vehicles in China. Founded in November
2014, NIO’s mission is to shape a joyful lifestyle. NIO aims to
build a community starting with smart electric vehicles to share
joy and grow together with users. NIO designs, develops, jointly
manufactures and sells smart premium electric vehicles, driving
innovations in next-generation technologies in autonomous driving,
digital technologies, electric powertrains and batteries. NIO
differentiates itself through its continuous technological
breakthroughs and innovations, such as its industry-leading battery
swapping technologies, Battery as a Service, or BaaS, as well as
its proprietary autonomous driving technologies and Autonomous
Driving as a Service, or ADaaS. NIO launched the ES8, a
seven-seater flagship premium smart electric SUV in December 2017,
and began deliveries of the ES8 in June 2018 and its variant, the
six-seater ES8, in March 2019. NIO launched the ES6, a five-seater
high-performance premium smart electric SUV, in December 2018, and
began deliveries of the ES6 in June 2019. NIO launched the EC6, a
five-seater premium smart electric coupe SUV, in December 2019, and
began deliveries of the EC6 in September 2020. NIO launched the
ET7, a flagship premium smart electric sedan, in January 2021.
Safe Harbor Statement
This press release contains statements that may
constitute “forward-looking” statements pursuant to the “safe
harbor” provisions of the U.S. Private Securities Litigation Reform
Act of 1995. These forward-looking statements can be identified by
terminology such as “will,” “expects,” “anticipates,” “aims,”
“future,” “intends,” “plans,” “believes,” “estimates,” “likely to”
and similar statements. NIO may also make written or oral
forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission, in its annual report to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
statements about NIO’s beliefs, plans and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: NIO’s strategies; NIO’s future business development,
financial condition and results of operations; NIO’s ability to
develop and manufacture a car of sufficient quality and appeal to
customers on schedule and on a large scale; its ability to ensure
and expand manufacturing capacities including establishing and
maintaining partnerships with third parties; its ability to provide
convenient and comprehensive power solutions to its customers; the
viability, growth potential and prospects of the newly introduced
BaaS and ADaaS; its ability to improve the technologies or develop
alternative technologies in meeting evolving market demand and
industry development; NIO’s ability to satisfy the mandated safety
standards relating to motor vehicles; its ability to secure supply
of raw materials or other components used in its vehicles; its
ability to secure sufficient reservations and sales of the ES8,
ES6, EC6 and ET7; its ability to control costs associated with its
operations; its ability to build the NIO brand; general economic
and business conditions globally and in China and assumptions
underlying or related to any of the foregoing. Further information
regarding these and other risks is included in NIO’s filings with
the SEC. All information provided in this press release is as of
the date of this press release, and NIO does not undertake any
obligation to update any forward-looking statement, except as
required under applicable law.
For more information, please visit: http://ir.nio.com
For investor and media inquiries, please contact:NIO
Inc.Investor RelationsTel:
+86-21-6908-2018Email: ir@nio.com
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