Home Economy News Volkswagen Group China plans to boost investment in majority-controlled JV

Volkswagen Group China plans to boost investment in majority-controlled JV


Volkswagen Group China plans to boost investment in majority-controlled JV By Reuters

Breaking News



Published Mar 12, 2024 05:54AM ET
Updated Mar 12, 2024 07:00AM ET

© Reuters. FILE PHOTO: The logo of Anhui Jianghuai Automobile Co (JAC Motors) is pictured at its booth during the Auto China 2016 auto show in Beijing, China April 26, 2016. REUTERS/Kim Kyung-Hoon/FILE PHOTO

BEIJING (Reuters) -Volkswagen Group China plans to boost investment in its only majority-controlled joint venture, according to a Tuesday stock filing by its Chinese partner, as the German automaker expands its business in the world’s largest auto market.

Anhui Jianghuai Automobile (JAC Motors), Volkswagen (ETR:VOWG_p)’s partner in its third China JV, said the two sides will boost the JV’s registered capital to 13.9 billion yuan ($1.94 billion) from 7.4 billion yuan.

JAC Motors will contribute 1.6 billion yuan to Volkswagen Anhui, while Volkswagen’s China division will contribute 4.9 billion yuan, with their holdings in the JV remaining unchanged at 25% and 75% respectively, the Chinese company said in a filing to the Shanghai bourse.

The move came as VW seeks to regain lost ground in the Chinese market where it is exploring local tie-ups to quicken its shift toward electrification.

VW revealed plans in late November to develop a new platform for entry-level electric vehicles in China and use more local components to lower costs, following its July deal with Chinese electric vehicle (EV) upstart Xpeng (NYSE:XPEV) to boost its EV lineup.

VW signed an agreement on the EV-focused 50:50 JV with JAC Motors in 2017. It secured a controlling 75% stake in the venture in 2020 after Beijing relaxed rules that had previously barred foreign firms from owning majority stakes in local auto firms.

The plant of VW Anhui has been producing Cupra Tavascan EVs for exports to markets including Europe.

VW holds a 50% stake in its JV with SAIC Motor Corp while its JV with China FAW Group Co is 60% controlled by FAW.

($1 = 7.1738 Chinese yuan renminbi)

Volkswagen Group China plans to boost investment in majority-controlled JV

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information

© 2007-2024 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Related News