JAC, Volkswagen Plan to Set Up Second Chinese JV to Develop Multi-Purpose Vehicles
Dou Shicong
/SOURCE : Yicai
JAC, Volkswagen Plan to Set Up Second Chinese JV to Develop Multi-Purpose Vehicles

(Yicai Global) Nov. 28 -- Chinese carmaker Anhui Jianghuai Automobile Group Co. [SHA:600418] (JAC) intends to establish its second joint venture with German auto giant Volkswagen to advance the multi-purpose vehicle (MPV) business, developing pickup trucks and electric commercial vehicles.

JAC signed a tripartite cooperative agreement with Volkswagen and its investment company in China yesterday. JAC and Volkswagen plan to establish a JV in Hefei in Anhui province, each holding a 50-percent stake in it, JAC said.

The JV will use both parties' commercial advantages to achieve development and sales goals in China and internationally. The JV is still undergoing a feasibility assessment since the companies have not finalized details such as the investment amount and business model.

The two groups signed an agreement in Berlin in Germany to establish a new-energy vehicle JV backed by USD909.09 million (CNY6 billion) in June.

As the largest carmaker in Europe, Volkswagen previously established two JVs in China -- Shanghai Volkswagen Co. in 1985 and FAW-Volkswagen Automobile Co. in 1991.

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Keywords: Anhui Jianghuai Automobile Group , Volkswagen , MPV , Joint Ventures