The letters JAC may be set to disappear from the tail logos of vehicles sold under the Nio Inc. (NIO.US; 9866.HK) brand, as the electric car developer strikes out on its own as an independent manufacturer.
The industry was abuzz with talk of a gear shift after media reports on Dec. 5 said Nio had appeared on a list of approved vehicle manufacturers issued by China’s Ministry of Industry and Information Technology, implying the EV company had obtained its own car production permit.
The direction of travel became clear later that day when Nio’s long-standing partner, JAC (600418.SH), announced the results of bids for some of its automotive production facilities. Nio will take over two of JAC’s manufacturing bases for 1.66 billion yuan and 1.49 billion yuan, in a deal worth nearly 3.16 billion yuan ($443 million).