Volkswagen is expanding its successful engagement in China with a new joint venture with the Chinese automaker Anhui Jianghuai Automobile Co (JAC).
“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 JV aims to develop EVs together and launch them in the hotly contested Chinese mass market. The agreement provides for the construction of a further factory as well as a research and development centre. The JV also includes the development and production of components for new energy vehicles (NEVs), vehicle connectivity and automotive data services. It intends to establish new used vehicle platforms and engage in all related business activities.
The Volkswagen Group's 'Together - Strategy 2025' in China aims to sell 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.
“The new joint venture is a key step in the implementation of our electric offensive on the Chinese market within the framework of our Group strategy Together - Strategy 2025,” said 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 contract signing ceremony in Berlin, adding, “I am confident that this partnership will play a key role in e-mobility in China.”
At the contract signing ceremony, JAC president, An Jin, said, “Our company is very confident about the prospects of this joint venture with one of the world’s leading automotive groups. We look forward to future cooperation with the Volkswagen Group and to being able to offer even more people in our country the benefits of sustainable mobility.”