Volkswagen is expanding its presence in the Chinese market with a new joint venture that it has signed with Chinese auto manufacturer Anhui Jianghuai Automobile Co (JAC).
Commenting on the new venture, Matthias Müller, CEO of the Volkswagen Group said that the new partnership marks another milestone in the company’s strategy for increasing its presence in the electric segment in China. He said that Volkswagen has played a key role together with its partners in China in shaping mobility in the country over the past three years and now wants to continue to play a key role in shaping the mobility of the future through initiatives like these.
The JV was established so that both partners could work jointly on with a view to developing EVs and launching them in the highly competitive EV market in China. The scope of the agreement also covers the construction of another factory and a center for research and development as well as the development and production of components for new energy vehicles (NEVs), vehicle connectivity and automotive data services. Another goal of the partnership is to establish new used vehicle platforms and engage in all related business activities.
The Volkswagen Group has a ‘Together – Strategy 2025’ in China as part of which the company plans to achieve sales of 400,000 electric vehicles in China in 2020 and 1.5 million electric vehicles in 2025. Based on the current timeline, the joint venture with JAC is expected to make its first electric vehicle in 2018.
Speaking at the ceremony to sign the contract for the joint venture, Prof. Dr. Jochem Heizmann, Member of the Board of Management of Volkswagen Aktiengesellschaft as well as President and CEO of Volkswagen Group China said that the new joint venture is a key step in the implementation of Volkswagen’s electric offensive on the Chinese market within the framework of its Group strategy “Together – Strategy 2025. He went on to express his confidence that the partnership with JAC would 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.”
Manju Mathew, an MBA in marketing, completed publisher training courses from the Oxford Brookes University and New York University. She started with marketing and PR roles before moving on to her current position as a full time writer. Currently living in Dubai, her life as an expat has sharpened her observation skills and flair for writing. She enjoys writing about luxury cars like Ferrari, Lamborghini, etc even if she can only dream of owning them.
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