Zhejiang Kandi Vehicles, a wholly owned subsidiary of Chinese electric vehicle maker Kandi Technologies Group, announced cooperation with Shanghai Maple Guorun Automobile, a 99% owned subsidiary of Geely Automobile Holdings to establish a joint venture company, named Zhejiang Kandi Electric Vehicles Investment Co. to engage in the investment, research and development, production, marketing and sales of electric vehicles in China.
Pursuant to the terms of the framework agreement, the JV Company will be owned 50% by Shanghai Maple and 50% by Kandi Vehicles. The registered capital of the JV Company will be RMB1,000,000,000 ($160 million), and with 50% to be contributed by each party.
Upon the establishment of the JV Company, the JV Company will acquire certain assets from Kandi and Geely Auto in order for the JV Company to process the necessary properties, assets and technologies to conduct the EV business.
To enable the proposed enterprise to take place, both Kandi and Geely Auto will establish new wholly-owned subsidiaries and inject certain assets into these companies. The JV Company will then acquire all the equity interests in each of these companies.
The board of directors of the JV Company will consist of four directors, of which two will be nominated by Kandi Vehicles and two will be nominated by Shanghai Maple.
Geely Auto is one of the largest and most well-known automobile manufacturers in China. In August 2010, Geely Auto acquired Volvo Car Corporation from Ford Motor Company.
