Shanghai (ZXZC)- BAIC BluePark New Energy Technology Co.,Ltd announced on March 22 that its subsidiary BAIC BJEV and Magna International Autolaunch Ireland Ltd. are going to form a joint venture that focuses on manufacturing premium all-electric passenger vehicles (PVs).

Two parties will team up to retrofit and upgrade the existing facilities and assets of BAIC (Zhenjiang) Automobile Co., Ltd., a subsidiary actually controlled by BAIC Group, through the yet-to-be-built joint venture, which is designed to be an all-electric PV maker with cost advantage and technology innovation ability. Besides, the joint venture will be constructed in forms of equity transfer and investment.

The announcement said the joint venture's manufacturing plant will have a designed annual capacity of 150,000 vehicles and involves a total investment of RMB2 billion that will be used to purchase devices and improve technologies.

The investment detail has not been settled yet and will be submitted to the board of directors or shareholder meeting for final approval after the company completes the detailed economic benefit analysis about the new program.

Magna International Autolaunch Ireland Ltd., who specializes in manufacturing automobile parts and relevant modules, is a subsidiary of Magna International Inc, a Canada-based global leading auto parts supplier. The announcement said Magna International Inc boasts a wide range of manufacturing capabilities covering car body, chassis, exterior, car roof system, powertrain, electronic parts, mechatronic intelligence, lighting system as well as seat.

In last June, Magna announced its intention to form two new joint ventures with BAIC BJEV for complete vehicle manufacturing as well as engineering of EVs. The joint ventures were expected to take over an existing BAIC manufacturing facility in Zhenjiang, Jiangsu Province. Moreover, they were also set up to offer engineering and complete vehicle manufacturing capacity to other potential customers.