Ideanomics enters into JV with iUnicorn to expand EV activities
Ideanomics announced the signing of a strategic joint venture with China's iUnicorn. iUnicorn is a Chinese ride-hailing service which offers only luxury branded electric vehicles in addition to Chinese electric vehicle manufactures. The JV will become a green finance and integrated marketing service enterprise for new energy vehicles as part of Ideanomics' New Energy Vehicle division. The JV will become the exclusive sales, marketing, operations, and financing partner for iUnicorns activities, as well as for other EV activities, including tour bus and other specialty vehicles. Ideanomics will have 50.1% ownership control. The board will contain 5 members comprised of 3 from Ideanomics, including the chairman, and 2 from iUnicorn. Additionally, iUnicorn will appoint the CEO and the parties will coordinate on the appointment of the JV's CFO. The JV will be domiciled outside of China to allow the flexibility to spin-off the business in the future. Ideanomics will contribute advisory and sales responsibilities which will include arranging ABS-based auto financing with its bank and financing partners, from assets provided by vehicle manufacturers to the value of RMB5B, as well as order origination in Vietnam, and other target territories up to and including the U.S. Ideanomics will also contribute its tour bus and commercial vehicle orders. iUnicorn will contribute its signed sales orders in Chengdu of 19,000 vehicles, plus a further 89,000 vehicle orders mainly in Sichuan province, which are in addition to the Chengdu order. iUnicorn will also provide sales and operational support for the joint venture. The fulfillment of these orders will commence immediately, with the Chengdu order anticipated to begin to take delivery during the 3rd quarter of 2019. The JV will generate revenues from fees from ABS, ranging from 0.7% to 1.5% and also commissions on vehicle sales orders, which will vary according to manufacturer and vehicle model.