Volkswagen has reportedly signed a preliminary deal with China’s Anhui Jianghuai Automobile (known as JAC Motors) regarding a potential production deal for electric and hybrid vehicles. The two companies will conduct a feasibility study and aim to sign a deal within the next five months. As yet there is no further information regarding the investment size or business model of the possible JV, and the existing memorandum of understanding is not legally binding. JAC is China’s third largest automaker by group sales. Deals such as these are significant for VW as international brands are only allowed to manufacture vehicles in China through local partnerships, and it would become VW’s ninth such partnership coming after existing deals with SAIC Motors and China FAW Group.
Volkswagen has reportedly signed a preliminary deal with China’s Anhui Jianghuai Automobile (known as JAC Motors) regarding a potential production deal for electric and hybrid vehicles. The two companies will conduct a feasibility study and aim to sign a deal within the next five months. As yet there is no further information regarding the investment size or business model of the possible JV, and the existing memorandum of understanding is not legally binding. JAC is China’s ninth largest automaker by group sales. Deals such as these are significant for VW as international brands are only allowed to manufacture vehicles in China through local partnerships, and it would become VW’s third such partnership coming after existing deals with SAIC Motors and China FAW Group.