In the presence of Federal Chancellor Angela Merkel and Chinese Premier Li Keqiang, Volkswagen signed a joint venture agreement with the Chinese automaker Anhui Jinghua Automobile (JAC) in Berlin today. Each of the partners is to hold a 50 percent stake in the new company, which is to develop, produce and market electric vehicles as well as mobility services.
This jv agreement was approved earlier this same month.
Anhui Jinghuai Automobile Co. Ltd (JAC) is a reputed Chinese automotive company headquartered in Hefei (Anhui province). Its product line includes mainly trucks (heavy, medium and light), multifunctional vehicle for commercial purposes, SUVs and sedanes. The company also manufactures key component, such as chassis, transmision pieces, motors, axis, etc. The Chinese company markets its products under two brands: Jinghuai and Ankai.
Matthias Müller (CEO Volkswagen AG). © Volkswagen AG.
“The new partnership is a further milestone in our electric offensive in China,” said Matthias Müller, CEO of the Volkswagen Group, commenting on the agreement. “Just as we have played a key role in shaping mobility together with our partners in China over the past 30 years or more, we want to play our part in shaping the mobility of the future: electric, fully networked and in line with the needs of our customers.”
The agreement is set to kast 25 years and includes the construction of a new factory and a I+D center. Under the agreement they will be manufactured as well components for the NEV (new electric vehicle) the development of new conectivity between the vehicles and the data services for cars. Among the business related the jv Volkswagen and JAC will establish new platforms to commercialise second hand models.
Prof. Dr. Jochem Heizmann, Member of the Board of Management of Volkswagen Aktiengesellschaft as well as President and CEO of Volkswagen Group China at the signing ceremony. ©Volkswagen AG.
“We are proud to have a strong partner at our side with JAC,” said Prof. Dr. Jochem Heizmann, Member of the Board of Management of Volkswagen Aktiengesellschaft as well as President and CEO of Volkswagen Group China. “Volkswagen also greatly appreciates the support of the Chinese government in forming this partnership, which I’m confident will make a major contribution to the country’s e-mobility future. This joint venture is a major step forward in Volkswagen’s roll-out of a broad portfolio of new energy vehicles for the China market under TOGETHER – Strategy 2025.”
Mr. An Jin, Chairman of the Anhui Jianghuai Automobile Co., Ltd, said, “JAC is very confident about the prospects of this joint venture with one of the world’s leading auto companies. With strong leadership from the Chinese Government, China is at the forefront of the development and use of electric vehicles and we appreciate the government’s strong support of our venture. We look forward to working with Volkswagen to bring the benefits of sustainable mobility to more Chinese people.”
An Jin, Chairman of the Anhui Jianghuai Automobile Co., Ltd. © JAC
The jv agreement with JAC is framed into the ambitious plans of the German automotive company to expand in China under its Togethers estrategy 2015. It also supports the Volkswagen’s global efforts towards a sustainable mobility. In the PRC the expansion plans into the EV segment will start off soon thanks t the three Chinese partners of the German manufacturer (FAW, SAIC and JAC). Volkswagen’s target is delivering 400,000 vehicles in the Chinese market by 2020and reach the 1.5 million mark in 2025. The firs chinese-german EV developed under the j-v agreement signed today is expected to be launched in 2018.
Volkswagen Group operates in the PRC since 1984. Along with two Chinese jv partners FAW (FAW Volkswagen) and SAIC (Shanghai Volkswagen) the German Group has delivered 30 million vehicles. The German company along with its Chinese partners employs 95,000 people, who work in 30 production plants. The brand’s over 3,000 selling partners with a total of 330.000 employees delivered toi clients in China 4 million Volkswagen models in 2016 ( a 12% growth against 2015).
Image over the headline.- Prof. Dr. Jochem Heizmann, Member of the Board of Management of Volkswagen Aktiengesellschaft as well as President and CEO of Volkswagen Group China -left- and An Jin, Chairman of the Anhui Jianghuai Automobile Co., Ltd. ©Volkswagen AG.
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