Volkswagen and JAC launch new JV for electric cars for mass market in China; 1st vehicle in 2018
02 June 2017
In the presence of Federal Chancellor Angela Merkel and Chinese Premier Li Keqiang in Berlin, Volkswagen signed a joint venture agreement with the Chinese automaker Anhui Jianghuai Automobile (JAC). Each of the partners is to hold a 50% stake in the new company.
The new joint venture, which has initially been concluded for a term of 25 years, will develop electric vehicles and launch them on the hotly contested Chinese mass market. The agreement provides for the construction of an additional factory as well as a research and development center.
The joint venture also includes the development and production of components for new energy vehicles (NEV), the development of vehicle connectivity and automotive data services. In addition, it is intended that the joint venture should establish new used vehicle platforms and engage in all related business activities.
The new partnership is a further milestone in our electric offensive in China. 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.
—Matthias Müller, CEO of the Volkswagen Group
With the new joint venture, the Volkswagen Group is also consistently pursuing the ambitious targets of its program for the future “TOGETHER - Strategy 2025” in China and is reinforcing its global endeavors for sustainable mobility. In the People’s Republic, the Group’s electric offensive is to be rapidly implemented together with the three Chinese partners—FAW, SAIC and JAC.
The objective is to deliver 400,000 electric vehicles to the Chinese market in 2020 and 1.5 million electric vehicles in 2025. It is planned that the new joint venture with JAC should produce its first jointly developed electric vehicle in 2018.
11 brands of the Volkswagen Group are represented in China. Together with its two existing joint venture partners FAW (FAW Volkswagen) and SAIC (SAIC Volkswagen) , the Volkswagen Group has delivered more than 30 million vehicles in China since it entered the market in 1984. About 95,000 employees at 30 Chinese plants currently work for Volkswagen Group China.
About 3,000 dealers (with 330,000 employees) delivered 150 different models and a total of about 4 million vehicles of the Volkswagen Group in 2016—corresponding to a rise of 12.2% over the previous year.
Anhui Jianghuai Automobile Co., Ltd. (JAC) is a well-known Chinese manufacturer of passenger cars and commercial vehicles with headquarters in Hefei (Anhui Province). The company’s product range mainly includes heavy, medium and light trucks, multi-functional commercial vehicles, SUVs, sedans and buses as well as key components such as chassis, transmissions, engines and axle units. JAC markets its vehicles under two automobile brands: Jianghuai and Ankai.
Comments