On July 24, Magna, BAIC Group and the Zhenjiang government celebrated the signing of a framework agreement governing their electric vehicle manufacturing joint venture in Zhenjiang, China, which marks another milestone of their continued cooperation. Executives from both companies and Zhenjiang government officials attended the celebration. The transaction, which is pending regulatory approval and other closing conditions, is expected to close in the fourth quarter of 2019.
Magna, BAIC Group and the Zhenjiang government sign the framework agreement for their electric vehicle manufacturing JV.

This joint venture, which is to be controlled by an affiliate of the BAIC Group, represents Magna's first investment in a complete vehicle manufacturing facility outside Europe. It will combine Magna's unique complete vehicle engineering and manufacturing expertise and BAIC's local manufacturing, marketing and distribution footprint to support electric mobility in China. The facility has the capacity of up to 180,000 vehicles per year.

“Magna has proven experience building complete vehicles for customers,” said Günther Apfalter, President of Magna Europe and Magna Steyr. “We are excited to work with BAIC to further strengthen Magna's e-mobility capability in the largest global market for new energy vehicles.”

“BAIC’s long-term strategy, an open and sharing philosophy, and a collaborative and innovative mindset leads us toward the top partners like Magna,” General Manager of BAIC Group Mr. Zhang Xiyong said at the ceremony.

In June 2018, Magna and BJEV announced they would jointly engineer and build premium electric vehicles for customers in China. In January 2019, the two sides celebrated the opening of a new engineering center and announced the groundbreaking of a new NEV test center in Zhenjiang.

The first production of electric vehicles, BJEV's ARCFOX models, is expected for launch in late 2020. The joint venture will also be capable of offering EV contract manufacturing services to other potential customers.