SHANGHAI, May 29 (Xinhua) -- German carmaker Volkswagen on Friday announced plans to invest 2 billion euros (about 2.2 billion U.S. dollars) in China to develop its electric vehicle business in the country.
With an investment of 1 billion euros, Volkswagen will increase stake in JAC Volkswagen to 75 percent and acquire 50 percent of JAG, the parent company of Volkswagen partner JAC.
Volkswagen will also acquire a 26 percent stake in battery manufacturer Gotion High-Tech Co. Ltd. for around 1 billion euros.
Volkswagen is the first foreign automobile company to invest directly in a Chinese battery manufacturing enterprise. The investment is expected to be completed by the end of 2020, according to Gotion.
“Together with strong and reliable partners, Volkswagen is strengthening its electrification strategy in China,” said Herbert Diess, CEO of Volkswagen AG. “The electric cars segment is growing rapidly and offers a great deal of potential for JAC Volkswagen.”
By opening up the market, China is giving Volkswagen new business opportunities, said Stephan Wollenstein, CEO of Volkswagen Group China.
Volkswagen Group China expects to deliver around 1.5 million new energy vehicles to Chinese customers in 2025.
The cooperation between Volkswagen and Gotion has created a new model for the development of China’s new energy automobile industry, and will further enhance the competitiveness of Gotion in the global battery industry, said Li Zhen, president of Gotion. Enditem
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