JAC Motors, a Chinese state-owned automobile manufacturer, said in an announcement that its application to set up a new energy car joint venture with Volkswagen China has received approval from the Ministry of Commerce, Yicai.com reported.
Both sides will own 50 percent of the stakes, and carry out all-round cooperation in the R&D of electric cars and parts, as well as productions, sales, travel programs and other fields.
In the Chinese new energy car market, foreign brands have been hesitant. Concerns include lack of infrastructure on charging piles, and those who have had success in the traditional vehicle market are unwilling to invest in a foreign market with an unclear outlook.
Thus, multinational car makers have chosen strategic cooperation with specific Chinese brands. Volkswagen chose JAC Motors, while Ford Motor chose Zotye Auto.
With the help of JAC Motors’ relationship with the government, their ability to control cost and understanding of the market, Volkswagen is expected to enter the mainstream of the Chinese market.