Volkswagen creates a new joint venture in China for the electric car

German group Volkswagen remains focused on strategy for creating a range of models completely electric. Has already developed several of its projects, but now I can’t stop their plans or investments, as your future depends on how you sell these products and of the host that you have in the main markets in which it is present.

China is a world power not only to sell traditional cars, but also in the electrical. The kit of the question is in the considerable support that is providing the government of the country. For this reason, and while supplies last, the Group Volkswagen wants to strengthen its position as a manufacturer of electric vehicles in the country.

to carry out this consolidation would have been negotiating for a time a new collaboration with a local company. Chinese law requires foreign companies that want to manufacture their models they have to make the hand of a company in the country. For this reason the company selected has not been another that Anhui Jinhuai Automobile (JAC).

This new joint venture will be controlled to 50 per cent by each company and their end is the development, production and marketing of electric vehicles and external services for disabled. But in addition, the agreement also provides for the creation of a new factory and a research and development center new to research in new mobility solutions for the country.

According to has stated Matthias Müller, ceo of the Volkswagen Group

“The new alliance is a milestone for our offensive power in China”

An Jin, President of JAC has also stated that

“Our company has full confidence in the prospects of this joint venture with one of the leading automobile groups around the world,” [ … ] “We are looking forward to cooperating with the Volkswagen Group and be able to offer more people of our country of the benefits of sustainable mobility”

The expected duration of the joint venture (if there are no discrepancies between the partners) 25 years. This time should be sufficient for the Volkswagen Group to consolidate its leadership in the market of electric vehicles for the chinese market. This is, to deliver 400 thousand electric cars a year by 2020 and 1.5 million by the year 2025.

how will Be able to achieve that?

Source – Volkswagen

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