Volkswagen agrees to Chinese EV joint venture

Volkswagen AG has signed a deal with Anhui Jianghuai Automobile Co., Ltd – seen selling light trucks – to work towards the joint development of all-electric vehicles in China.

“As we aim to be at the forefront of e-mobility, Volkswagen Group is looking forward to explore all options to set up a close and mutually beneficial partnership with JAC,” VAG board chairman Matthias Muller said. “We believe this cooperation would not only benefit our two organizations, but would also be of great value to our customers, a sound environment and the Chinese society in general.”

According to the MoU the parties intend to enter into discussions to evaluate the feasibility of the joint ventures, focusing on new energy vehicles (NEV).

An Jin, chairman of the Anhui Jianghuai Automobile Co., Ltd, said, “We look forward to a full scope cooperation together with Volkswagen Group, focus on new energy vehicles, to provide Chinese consumers with highly cost-effective battery-powered electric vehicle (BEV) products that promote the development of the Chinese new energy vehicle sector as well as the Chinese auto industry’s transformation and upgrading.

“The intended cooperation between JAC and Volkswagen Group can be called a ‘Creating Together’ model, which embodies mutual benefit and a win-win situation. We hope to develop this cooperation into a brand new business model during the process of Chinese auto industry’s opening up.”

Volkswagen says it will be launching a broad-based initiative for electro-mobility and intends to develop more than 30 new, purely battery-powered electric vehicles (BEVs) over the next ten years.

The strategy is part of its recovery process from the emissions scandal that continues to overshadow its efforts.

JAC delivered 333,639 vehicles and chassis in the first six months of 2016 (+14.15%), with new energy vehicle sales increased massively compared with last year (+261%), while SUV sales maintained stable growth (+30%).

JAC’s main products include: heavy, medium, light and miniature trucks, multi-function commercial vehicles, SUVs, sedans, buses, and core components such as chassis, gearboxes, engines and axle assemblies.