(Yicai Global) Dec. 25 -- A Chinese joint venture under Volkswagen Group bought a passenger vehicle asset from the JV's Chinese partner Anhui Jianghuai Automobile Group for CNY770 million (USD117.9 million) yesterday.

Volkswagen Anhui -- formerly JAC Volkswagen Automotive -- will buy the currently idle plant, Anhui Jianghuai Automobile said in a statement yesterday. The facility mainly made sport utility vehicles and sedans before halting production last year.

The statement omitted mention of Volkswagen Anhui's post-acquisition business plans.

Shares of Jianghuai Auto [SHE:600418] were up 1.41 percent at CNY12.20 (USD1.86) in midmorning trading.

The former JAC Volkswagen is a 50/50 JV Volkswagen and Anhui Jianghuai Automobile Group set up in 2017 that launched the Sihao electric vehicle brand in 2018. They increased capital in the JV in July, lifting VW's holding to 75 percent and dropping Jianghuai's to 25 percent.

VW will authorize JAC Volkswagen to produce its mainstream marques and EV products now that it controls it, Anhui Jianghuai Auto said in an earlier statement. The JV will gradually raise its capacity and seek to turn out up to 400,000 vehicles through to 2029. The project's investment is projected to total about EUR1 billion (USD1.2 billion).

Editor: Ben Armour, Xiao Yi