Beijing electric, Canada's Magna in NEV deal

China's Beijing Electric Vehicle Co Ltd and Canadian auto supplier Magna international yesterday announced a joint venture for smart electric vehicles for the Chinese market.

Thew new Magna Blue Sky NEV Technology (Zhenjiang) Co Ltd, based in Zhenjiang in Jiangsu Province, will provide engineering services to Beijing Electric Vehicle and offer engineering and complete vehicle manufacturing capacity to other potential customers in China.

It will initially employ about 420 people.

As part of the joint venture, both companies also announced the groundbreaking of a 12,000-square- meter new-energy vehicle test center expected to be open by September.

The new center will test battery modules, chassis, electronic control units and conduct vehicle research and development.

The aim is to develop key components for electric vehicles, including electric motors, batteries and electronic control units, as well as improving safety and reliability.

Magna said the joint venture will further support its electrification strategy in China.

Zheng Gang, general manager of Beijing Electric, said:

“Collaboration is the trend of automotive industry. Through the cooperation with Magna, Beijing Electric Vehicle Co Ltd will greatly enhance its product quality and bring its brand to the next level.”

In June 2018, Magna and Beijing Electric announced they would jointly engineer and build premium electric vehicles for Chinese customers.

They expect to launch their first vehicles by 2020.