(Yicai Global) Sept. 7 -- German carmaker Volkswagen AG [FOB:VOW] and Anhui Jianghuai Automobile Co. [SHA:600418] have signed a memorandum of understanding but no details have been released yet, Yicai Global has learned.
The co-operation is seen to be a move by Volkswagen to improve its image after the fallout of the emissions scandal last year, when the carmaker was found to have manipulated car emissions during testing. The Wolfsburg-based company plans to launch more than 30 electric car models by 2025. JAC Motors is a rising star in the new energy vehicle sector, and has promoted over 20,000 electric vehicles so far. A co-operation with the Hefei-based company would enable Volkswagen to meet its target more rapidly.
Anhui Jianghuai, operating as JAC Motors, suspended trading on the Shanghai stock exchange today.
Volkswagen already owns two passenger vehicle joint ventures in China, namely FAW-Volkswagen Automobile Co. and SAIC Volkswagen Automotive Co. This is the maximum number of joint ventures that a foreign auto brand can operate in China for the same product.
Thus it is assumed that the collaboration between JAC Motors and Volkswagen will either be a technological cooperation or a commercial vehicle joint venture.