JAC Volkswagen

History

2020: Volkswagen increased to 75% a share for 1 billion euros

At the end of May, 2020 announced Volkswagen investment into two Chinese producers of electric vehicles and component parts for them at once. The general size of investments exceeds 2 billion euros.

The German auto giant invests 1 billion euros in Anhui Jianghuai Automobile Group (parent company for JAC Motors) which is engaged in production of electric motor transport. In it Volkswagen will receive a 50 percent share therefore the share of concern in JAC Volkswagen joint venture will grow to 75%.

Volkswagen invests €2 billion in the Chinese producers of electric vehicles

Besides, Volkswagen for 1 billion euros will take 26.5% of shares of the manufacture of accumulators for the electric vehicles Gotion High-Tech and will become its largest shareholder that "receive deeper know-how  in the field of accumulators" on  all chain of their  creation, up to  processing. Contracts with  other  suppliers  of batteries (LG Chem, Samsung, SKI Innovation)   will not suffer from it. The stated 2.1 billion euros are only a half of the investments of the German car maker into  China planned for  the 2020th.

By the end of May, 2020 of Volkswagen has two joint ventures in China - with SAIC and FAW. Thanks to this cooperation of Volkswagen expects to adjust annual release to 1.5 million electric vehicles and to produce 5 new models of such vehicles by 2025.

Besides, the plants on production of electric vehicles and also the technology and design centers will be upgraded. By 2025 it is going to bring a share of the electric vehicles JAC to 30% of total sales.

As notes the Nikkei edition, China aims to strengthen cooperation with Germany and to support business of Volkswagen in the market in the conditions of escalation of the conflict with the USA. Volkswagen is the largest player in the Chinese automobile market from shares of nearly 20%, but Toyota catches up the last years.^[1]

Electric vehicles

Notes