New progress was recently made in the project of the manufacturing joint venture between China’s state-owned automaker BAIC and the leading global automotive supplier Magna.

According to an announcement released by BAIC BluePark New Energy Technology Co.,Ltd (BAIC BluePark), a proposal about BJEV investing in the BAIC-Magna manufacturing joint venture has been approved at a shareholder meeting. During the transaction, BJEV, the NEV arm of BAIC Group, would accept 51% stake in BAIC (Zhenjiang) Automobile Co., Ltd. (hereinafter referred to as BAIC Zhenjiang) transferred by BAIC Group and Zhenjiang Automobile Industry Investment Co.,Ltd at around RMB313.06 million worth of cash through an investment subsidiary.

BAIC Magna joint venture, BJEV Magna manufacturing JV, China automotive news

（Magna, BAIC Group and the Zhenjiang government sign the framework agreement for their electric vehicle manufacturing JV, photo source: Magna International Inc.)

Besides, Magna International Autolaunch Ireland Ltd. (Magna Ireland), an affiliate of Magna International, would get 49% stake in BAIC Zhengjiang transferred by BAIC Group via an equity exchange. The name of BAIC Zhenjiang would be changed to BAIC BluePark Magna Automobile Co.,Ltd, namely, the aforesaid manufacturing joint venture.

After receiving the equity, BJEV's investment subsidiary and Magna Ireland would inject cash into the joint venture at a ratio of 51% to 49%.

In order to build the joint venture into an all-electric PV manufacturer with well-controlled cost and technical innovation ability, both parent companies would revamp the existing facilities and update the current asset structure.