Volkswagen Group and JAC explore JV for multi-functional vehicles; internal combustion and new energy vehicles
Volkswagen Aktiengesellschaft, Volkswagen Group China and Anhui Jianghuai Automobile Co., Ltd. (JAC) plan to undertake research and development on multi-functional vehicles (MFVs) together. The three parties signed a Memorandum of Understanding to explore potential joint venture models.
The new cooperation will be another milestone in the companies’ relationship, after they agreed to set up a joint venture to manufacture battery electric vehicles for the competitive e-mobility passenger car market in June. (Earlier post.)
Volkswagen welcomes this opportunity to pursue further cooperation with JAC. Both groups have complementary strengths in the multi functional vehicle field. JAC is an established brand in the Chinese market with a strong track record of producing multi functional vehicles that are popular with consumers. Volkswagen has a long heritage in producing versatile vehicles with advanced technology.—Prof. Dr. Jochem Heizmann, Member of the Board of Management of Volkswagen AG,and President and CEO of Volkswagen Group China
Volkswagen Commercial Vehicles (VWCV) brand will take the lead role on behalf of Volkswagen Aktiengesellschaft to be JAC’s partner in the joint venture.
The companies will actively explore a full range of cooperation including advances in MFV design, technology, product quality through R&D as well as sales. It will cover both internal combustion engine and new energy models.
JAC will have a 50% stake in the new venture, with Volkswagen Group holding the other 50%. The partners plan to set up the venture in Hefei, Anhui province, where JAC is based.