According to Anhui Jianghuai Automobile (JAC), Nio has bought two asset packages of F1 and F2 plants, getting ready to manage manufacturing independently. The combined transaction price reached 3.16 billion yuan (442 million USD). Earlier, Nio acquired a production license from the Chinese government. At the same time, the Chinese startup reported record revenue in the third quarter.
Nio acquires JAC plant
Today, JAC announced the sale of three asset packages to Nio and Hefei Hengchuang Intelligent Technology. Nio has acquired two asset packages comprising the inventory, fixed assets, structures, and equipment of the Xinqiao factory (F1 plant) and the third JAC plant currently under construction (F2 plant). Package 1 with F2 plant assets has a value of 1.64 billion yuan, while Package 3 with F1 plant assets is valued at 1.47 billion yuan. Nio spent 3.16 billion yuan (422 million USD) to get those plants.
It means Nio acquires two plants from JAC and finally gets ready to manufacture cars on its own. We will remind you that previously, JAC was an exclusive contract manufacturer of Nio vehicles in China. According to previous information, Nio paid JAC around 1,300 USD for every car manufactured in 2022. Recently, Nio has also got the production license. It means that now Nio is one hundred percent ready to hold the manufacturing process on its own.
Nio Q3 earnings
At the same time, Nio announced it had reached a record revenue in Q3 of 19.07 billion yuan (2.61 USD), 46.6% Y-O-Y. In Q3, Nio delivered 55,432 vehicles, 75.4% year-on-year. At the same time, the cost of sales reached 17.5 billion yuan (2.47 billion USD), resulting in a gross profit of 1.52 billion yuan (210 million USD). However, Nio’s losses increased 10.8% Y-O-Y, reaching 4.56 billion yuan (640 million USD).
So, Nio is opening a new page in its story, starting to manufacture the vehicles on its own. It will clearly influence the future brand’s strategy. We will also remind you that Nio has recently signed strategic cooperation agreements with Changan and Geely. Three companies will promote the construction of battery swap station infrastructure.
Source: JAC, Nio
