© Volkswagen Electronics Production | May 29, 2020
Volkswagen intensifies e-mobility activities in China
Volkswagen has initiated the next chapter for its business in China. The automotive giant plans to increase its share in JAC Volkswagen, its joint venture for e-mobility.
Around EUR 1 billion is to be invested. This amount includes the acquisition of 50% of JAG, the parent company of the Volkswagen partner JAC, and an increase in the stake in JAC Volkswagen from 50 to 75%. Furthermore, Volkswagen will acquire a 26% stake in battery manufacturer Gotion High-Tech Co., Ltd. for around EUR 1 billion, becoming the company’s largest shareholder. “Together with strong and reliable partners, Volkswagen is strengthening its electrification strategy in China. The electric cars segment is growing rapidly and offers a great deal of potential for JAC Volkswagen. We are actively driving forward the development of battery cells in China through our strategic investment in Gotion,” says Dr. Herbert Diess, CEO of Volkswagen AG, in a press release. “I am delighted with this strategic milestone in our mutual and trusted relations as Volkswagen takes a strategic role in a state-owned company for the first time, as well as investing direct in a Chinese battery supplier. These investments shape the character of Volkswagen in China, making it a more localized, more sustainability-focused mobility company. By opening up the market, China is giving Volkswagen new business opportunities,” adds Dr. Stephan Wöllenstein, CEO of Volkswagen Group China. Founded in 2017, the JAC Volkswagen joint venture is an all-electric company which develops, produces and sells NEVs. A portfolio expansion of up to 5 additional BEV models by 2025 is planned, as well as building a full-scale e-model factory and finishing the R&D center in Hefei. The company says that the deal with Gotion will not affect ongoing contracts with other battery suppliers.