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Another JV bites the dust

The company has turned sick, sales & production had dwindled over the years to almost nothing, so this eventuality had been brewing for some months and now becomes inevitable. Yulon will officially pull out Luxgen from mainland China.

http://news.bitauto.com/zonghexinwen/20200625/1111962716.html

Taiwan's Yulon Motor itself was going through a rough patch lately. In February 2020, Yulon's subsidiary Hua-chuang Automobile Information Technical Center Co., Ltd. (HAITEC) and Hon Hai Precision Industry Group (Foxconn) set up a 49:51 joint venture in Taiwan to develop electric versions of the S3 and U5, cars based on the LC platform. Foxocnn was chosen as a partner because of its expertise in the electronics tech industry. HAITEC purchased the IP and technological assets related to the LC platform from Dongfeng-Yulon. Luxgen has already stopped selling the U5 and S3, relatively new cars, in Taiwan (note: Luxgen already provides an S3 EV to ride-sharing fleets in Taiwan; it is powered by a 150 kW motor, has a 33 kWh battery and a range of 203 km; the new S3 EV for private buyers will be a more up-to-date car).

Not many are aware that due to agreements between Dongfeng-Yulon and Yulon Motor, the former's contributions to the development costs of the S5, U6, S3, U5, and U7 (retrospectively) were far greater, hovering in the region of 6:1 to 5:1. Hence the IP related to the above vehicles belonged to Dongfeng-Yulon and not Yulon Motor. Yulon Motor itself held the IP for the M7, and later the URX and MBU. All these projects were carried out by HAITEC in Taiwan and its mainland branch, Hangzhou Haitec. [source: Yulon Motor Annual Reports]

M7 and U7 are based on the NV platform, S5, U6 and URX on the GP platform, and MBU on the new M platform.
 
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