Volkswagen is to increase its share in JAC Volkswagen, its Chinese e-mobility joint venture. Around €1 billion is to be invested. This amount includes the acquisition of 50 percent of JAG, the parent company of the Volkswagen partner JAC, and an increase in the stake in JAC Volkswagen from 50 to 75 percent.
VW will also acquire a 26 percent stake in the EV battery manufacturer Gotion High-Tech Co., Ltd. for around €1 billion, becoming the company’s largest shareholder.
Dr. Herbert Diess, CEO of Volkswagen AG, says: “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.”
Dr. Stephan Wöllenstein, CEO of Volkswagen Group China, adds: “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.”
Volkswagen is the first global automaker to invest directly in a Chinese battery supplier. It is planned to complete the deal by the end of 2020.