On February 25, the NIO smart electric coupe SUV EC6 mass production project was launched at the JAC NIO Advanced Manufacturing Base in Hefei. The smart electric coupe SUV EC6 is the third model of NIO’s mass production at Hefei JAC NIO’s advanced manufacturing base. NIO EC6 debuted at the 2019 NIO Day, the price and configuration are expected to be announced in July 2020, and delivery will begin in September.
Earlier in the day, at the NIO House in the JAC NIO Advanced Manufacturing Base, NIO and the Hefei Municipal Government signed a framework agreement for the establishment of the NIO China headquarters in Hefei. Later, the gov. leaders of Anhui Province and Hefei also watched the live demonstration of NIO Power Station and visited the production line of EC6 mass production project.
According to the official disclosure, the NIO China Headquarters project plans to build NIO China Headquarters, R & D and production bases in Hefei, and build a Chinese headquarters operating system centered on Hefei. The Hefei government will invest in the NIO China headquarters project through designated investment companies and joint market-oriented investors. The total investment is expected to exceed 10 billion yuan (~US$1.42 billion).
Regarding the framework agreement signed with the Hefei Municipal Government, NIO’s founder, chairman and CEO Li Bin said in an exclusive dialogue with Tencent News that NIO’s contact with Hefei gov. has been for a while. After New Year’s Day, the framework agreement was officially signed to this day, and the speed is indeed fast.
Li Bin said that the framework agreement was signed this time, and the specific details of the project are still under negotiation and formulation. The two parties plan to complete the signing of the final investment agreement within 2 months.
Li Bin said that this cooperation will be a win-win situation. Over the past four years, NIO has invested a lot of resources in the Hefei base, contributing to local social and economic development, and driving the simultaneous development of Hefei’s upstream and downstream industrial chains. Hefei gov.’s choice of NIO as a key support enterprise is a reasonable choice for Hefei’s industrial layout. Smart electric vehicles are a national strategic emerging industry and an important industry in Hefei’s ongoing strategic layout. The establishment of NIO will become a business card for the transformation and upgrading of the automotive industry in Anhui Province, and the benchmark for “Internet + advanced manufacturing”.
“After nearly 20 years of development, Anhui has become a major town in the automotive manufacturing industry. It is also because Anhui has a very good industrial foundation that led to the signing of this cooperation framework agreement. Hefei’s regional economic advantages in the Yangtze River Delta integration It is beneficial to NIO’s efficient industrial layout in the Yangtze River Delta. At the same time, the open business environment here is also very suitable for NIO’s long-term development. “
Li Bin believes that the good operation of JAC NIO’s advanced manufacturing base has laid the foundation for NIO’s development in Hefei. NIO has carried out in-depth industrial layout in Hefei. The establishment of NIO China headquarters in Hefei is conducive to the improvement of operational efficiency and long-term stable development.
Regarding previous media reports that Geely will invest in NIO, Li Bin responded that he did not know where the rumor came from and did not comment on it.
The following are the main contents of Li Bin’s exclusive dialogue with Tencent News “First Line”:
Question: When did this cooperation negotiation start?
Li Bin: NIO’s contact with Hefei for a period of time. The really fast startup is a matter after New Year’s Day. Today, the framework agreement was officially signed, and the speed is indeed very fast.
Question: Has the epidemic affected the agreement?
Li Bin: After all, it is a discussion agreement, not like resumption of work. Therefore, our remote discussion and communication are also very convenient, and we are not too affected by the epidemic. The leaders of Anhui Province and Hefei City attached great importance to this matter, and the working team was very professional and efficient, so it was very fast to reach an agreement. The epidemic prevention and control in one hand and the economy in the other hand are indeed very efficient.
Question: Why is Hefei? What are the benefits of choosing Hefei gov. for you?
Li Bin: Choosing Hefei is a very reasonable thing for both sides. Our main team is in East China. Hefei itself has developed very well in the Yangtze River Delta in recent years. Hefei ’s GDP is close to 1 trillion yuan, and the economy of Anhui is also developing. Very well.
In recent years, we have developed a deep manufacturing base in Hefei through JAC NIO, and we have more than 200 colleagues who are based in Hefei. Hefei has its own talent advantages, not only automotive related, including artificial intelligence, software and other aspects, the advantages of talent gathering are relatively obvious.
If we go elsewhere, it will involve the premature start of construction of another factory in Hefei without full capacity. It is also unreasonable.
We have dealt with the government departments of Anhui Province and Hefei in recent years and found that the overall business environment of Anhui and Hefei is very good. Their work style is more efficient, pragmatic and full of innovative consciousness. In fact, Hefei is already an invisible champion in many aspects. Already.
After nearly 20 years of development, Anhui has become a major town in the automobile manufacturing industry. It is also because Anhui has a very good industrial foundation that led to the signing of this cooperation framework agreement. Hefei’s integrated regional economic advantage in the Yangtze River Delta is beneficial to NIO’s efficient industrial layout in the Yangtze River Delta. At the same time, the open business environment here is also very suitable for NIO’s long-term development. From the perspective of NIO, Hefei is a very reasonable choice in many aspects.
Question: Conversely, for Hefei, why should Hefei Gov. choose NIO as a key support enterprise?
Li Bin: Supporting NIO and allowing NIO’s Chinese headquarters to settle in Hefei is also very reasonable for Hefei. NIO should be said to be the most competitive high-end electric vehicle brand in China. If you settle in other places, it will certainly involve the transfer of some industries and the dispersion of resources. For Hefei, on this basis, supporting NIO at this time is definitely the time when the input-output ratio is the highest.
Today at this cooperation signing ceremony, six members of the Standing Committee of Anhui Province, including the Secretary of the Provincial Party Committee and the Governor, came to the scene and really attached great importance to and supported this matter. Based on their understanding of NIO and their needs for the strategic development of the industrial layout, the two parties did talk faster, and both parties were particularly reasonable choices.
I think this cooperation will be a win-win situation. Over the past four years, NIO has invested a lot of resources in the Hefei base, contributing to local social and economic development, and driving the simultaneous development of Hefei’s upstream and downstream industrial chains. Hefei’s choice of NIO as a key support enterprise is a reasonable choice for Hefei’s industrial layout. Smart electric vehicles are a national strategic emerging industry and an important industry in Hefei’s ongoing strategic layout. The establishment of NIO will become a business card for the transformation and upgrading of the automotive industry in Anhui Province, and the benchmark for “Internet + advanced manufacturing”.
Question: The agreement signed this time is still a framework agreement. When is the final agreement expected to be signed? Will the existing business layout be adjusted after it is reached?
Li Bin: The specific details of the project are indeed under negotiation and formulation. The two parties plan to complete the signing of the final investment agreement within 2 months. Because it is still a framework agreement, the arrangement and adjustment of the subsequent industrial layout will be considered in a comprehensive manner according to the final agreement and the actual needs of the company’s development.
Question: What is the relationship between NIO China mentioned in the framework agreement and the main body of NIO listed companies?
Li Bin: It is a subsidiary of a listed company.
Question: After the completion of the landing, does NIO need to introduce new investors?
Li Bin: From our perspective, financing will be an ongoing process. NIO will continue to finance through various methods. We will do US dollar financing through listed companies. NIO China is also planning to open the RMB financing channel. Generally speaking, we will also have continuous financing plans to support research and development And the construction of user service systems.
