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BAIC will sell a 49% stake in BAIC (Zhenjiang) Automobile Co., Ltd., with a base price of about 300 million yuan, according to a notice disclosed by the Beijing property Rights Exchange. The announcement will end on the 27th of this month.

According to public information, BAIC (Zhenjiang) Automobile Co., Ltd. was established on September 25, 2013. The company's business scope includes trucks and chassis of the product catalogue approved and announced by the state. BAIC currently holds 85% of BAIC Zhenjiang Automobile Co., Ltd., and Zhenjiang Automobile Industry Investment Co., Ltd. holds 15%. As of August 31, 2019, the total assets of BAIC (Zhenjiang) Automobile Co., Ltd. is about 1.432 billion yuan and the total liability is 857 million yuan.

It is understood that the 49% stake sale of BAIC (Zhenjiang) is to promote new progress in the cooperation project with BAIC holding company Magna. At the beginning of this year, BAIC New Energy and Magna International formed a joint venture-Magna Weilan New Energy vehicle Technology (Zhenjiang) Co., Ltd. (referred to as "Magna Weilan"), which is the high-end brand of BAIC New Energy vehicles.

Magna is one of the largest automobile suppliers in the world, with vehicle engineering development technology and high-end manufacturing capacity, and has 328 manufacturing plants in 29 countries around the world. Mercedes-Benz, BMW and other international luxury brands to provide product development and manufacturing services.

In July this year, BAIC and Magna signed an agreement on BAIC Magna's high-end new energy vehicle manufacturing base, agreeing to restructure the existing BAIC Zhenjiang Automobile Company and build a manufacturing joint venture plant and product planning. Under the agreement, BAIC intends to sell a 49 per cent stake in the joint venture to Magna.

According to the plan, the joint venture will first put into production related models of BAIC's high-end new energy brand ARCFOX, and will put into production at BAIC Magna's high-end new energy vehicle manufacturing base in the future. The new model ARCFOX-GT has also been unveiled at the 17th Guangzhou Auto Show this year. It is positioned as an electric supercar with an acceleration of only 2.59 seconds. The monolithic integrated carbon fiber body is the world's first commercial platform equipped with 5G technology-IMC intelligent module standard architecture.

BAIC's high-end brand positioning means that in addition to launching civilian electric cars, it will also seek a breakthrough in differential competition, but at present, it seems that it is not easy to turn to high-end models, let alone to be a good high-end brand.

In recent years, the high-end positioning of NIO has been suffering from market pressure, coupled with the environmental impact of the new energy market, the whole new forces account for less than 10% of the new energy market, such as FF, Baiteng and other high-end new energy models are still in a state of "difficult delivery".

With the economic globalization, the automobile industry has ushered in a more severe and cruel competitive environment. With the end of the year approaching, multinational car companies, including BBA, have released the latest electrified products and layout. Tesla originally occupied the high-end new energy vehicle market by virtue of innovative thinking, but now he is facing the listing of high-end new energy vehicle products such as Mercedes-Benz EQC and Audi e-tron, which also indicates that the brand pattern of the high-end new energy vehicle market will be reshaped. But the high-end brand needs more is the brand inside information, as the domestic independent lack also is these.

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