M-sur | Dreamstime
Dreamstime 159368266 800

VW to Buy 50% of China's JAC Motors

June 1, 2020
A reported $491-million investment by Volkswagen will give it joint control of the passenger and commercial vehicle producer, and a larger share of the EV venture that the two already operate.

Volkswagen AG plans to take a 50% share in Anhui Jianghuai Automobile Group Holdings Ltd., the Chinese automaker known as JAC Motors, with which VW has an electric-vehicle joint venture. The investment is estimated to cost VW $491 million, though complete financial terms have not been disclosed. China's Anhui province is the seller, and will hold 50% of the joint-venture to be established to operate JAC Motors.

JAC Motors currently produces a range of passenger cars, light trucks, and commercial vehicles,

Further, Volkswagen is also expected to raise to 75% its share in the electric-vehicle joint-venture that the two already operate, according to JAC Motors. The two partners reportedly will invest a further €1 billion ($1.11 billion) to increase their EV output to 350,000-400,000 units by 2029, according to Jianghuai Automobile. It added that VW may introduce new models to the Chinese market through the new venture.

In addition to its EV venture with JAC Motors, Volkswagen has ventures in China with SAIC Motor Corp. and China FAW Group Co.

Latest from News

Pratt & Whitney
Liujunrong | Dreamstime
Dmitry Kalinovsky | Dreamstime
Spirit AeroSystems
Ford / Rudolph Libbe Group