Volkswagen, JAC ink MoU
The NDRC, China’s top state planner, gave a green light to JAC and VW to build 100,000 pure battery electric vehicles annually in a project worth 5.1 billion yuan ($740 million)
MUSCAT: Volkswagen AG and Anhui Jianghuai Automobile Co., Ltd. (JAC) signed a Memorandum of Understanding (MoU) in Wolfsburg to achieve long-term partnership for joint development of innovative battery-powered electric vehicles in China.
The National Development and Reform Commission (NDRC), China’s top state planner, gave a green light to JAC and VW to build 100,000 pure battery electric vehicles annually in a project worth 5.1 billion yuan ($740 million), according to a JAC Motor stock exchange filing. Each company will hold a 50% stake in the new company, which is to develop, produce and market electric vehicles and mobility services, the company said in a media statement.
According to the MoU, the parties will hold discussions to evaluate the perspectives and feasibility of a new joint venture company (“JV”) to carry out a full-scale study and research in areas including development, manufacture, sales and mobility services, in the field of New Energy Vehicles (NEV), and parts in order to improve fuel efficiency. The top priority will be to develop zero-emission mobility solutions.
“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.”
As part of its comprehensive new Group Strategy “Together – Strategy 2025” Volkswagen is also reinforcing efforts for sustainable mobility worldwide. The group will be launching a broad-based initiative for electro-mobility and intends to develop more than 30 new, purely battery-powered electric vehicles (BEVs) over the next 10 years. In addition to the development and production of components for NEVs, the joint venture also aims at the development of vehicle connectivity and automotive data services.
“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: “I am confident that this partnership will play a key role in e-mobility in China.”
An Jin, JAC president 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.”