Volkswagen Pours More Than $2 Billion Into China's Electric-Car Industry -- Update
May 29 2020 - 3:49AM
Dow Jones News
By Trefor Moss and Martin Mou
SHANGHAI-- Volkswagen AG is investing EUR1 billion ($1.11
billion) in a Chinese auto maker and a further EUR1.1 billion in a
local battery producer, the company said Friday, in the latest bet
by the German auto maker on the Chinese electric-vehicle
sector.
Volkswagen is increasing its stake in an existing joint venture
with JAC Motors to 75% from 50% through the acquisition of half of
JAC's parent company, state-owned Anhui Jianghuai Automobile Group.
The joint venture focuses on electric vehicles.
The joint venture will introduce up to five additional electric
car models by 2025, Volkswagen said. The annual output of the joint
venture will increase to up to 400,000 vehicles by 2029, the
Chinese car maker said.
Separately, Volkswagen said it took a 26% stake in Guoxuan
High-Tech Co., also known as Gotion High-Tech, becoming the
Shanghai-listed EV battery company's biggest shareholder.
Both JAC and Guoxuan are based in the city of Hefei, 300 miles
west of Shanghai.
China is the world's biggest automotive market and an early
leader in adopting electric vehicles, but has been confronting a
slump in demand. The Chinese government had set a goal of selling
two million electric vehicles this year, but analysts expect only
around 1.1 million vehicles to find buyers, down about 10% from
last year.
In 2025, China is aiming for new-energy vehicles, including
electric cars, to account for a quarter of vehicle sales in the
country.
Write to Trefor Moss at Trefor.Moss@wsj.com
(END) Dow Jones Newswires
May 29, 2020 03:34 ET (07:34 GMT)
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