Gasgoo.com -Wanxiang Group, a well-known automotive parts manufacture in China, to realize its 16-year-old dream of building whole vehicle of its own, as its business partner SAIC helps the company to obtain license plate at the end of July.
SAIC Motor Corporation and Wanxiang Group have set up a 49%-51% joint venture, which is known as SAIC Wanxiang New Energy Coach Co., Ltd. After a few years of operation, the new joint-venture is to produce its first new alternative fueled coach after granted with license plates by Chinese authorities.
Wanxiang Group has conceived the whole car building dream for sixteen years. The company started EV making with establishing a special project team in 1999. Then he expanded the company through purchasing A123 Corporation, the biggest EV battery maker in US, in 2012, followed by purchasing Fisker Automotive with $149.2 million in 2014 and buying battery technology from Leyden Energy Corporation.
However, its pure electric buses were reported battery life problem and wading problems during the pilot run in 2012.
Therefore, Wanxiang Group thought that the whole vehicle building technology from SAIC might help him resolve these default. SAIC agreed to help the company to get the license plate as a permission to build whole vehicles through establishing a 49%-51% joint venture for they have been business partners for years, as how SAIC helped Chery to get the ˇ°permissionˇ±.
SAIC has never owned less than 50% shareholding of a joint-venture of whole vehicle building, except for this cooperation with Wanxiang Group, indicating that it is Wanxiang Group that will lead the joint-venture.
SAIC and Wanxiang Group seek for further cooperation in Fisker project, which will definitely upgrade the brand influence for SAIC.