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VW wants majority in JAC joint venture


  • VW wants majority in JAC joint venture

    VW wants majority in JAC joint ventureVolkswagen has officially confirmed its plan to increase its stake in JAC Volkswagen, its joint venture for electromobility, and to invest around one billion euros in this. The Wolfsburg-based company is getting a Chinese battery specialist for another billion.

    With this amount, Wolfsburg cover two actions at once. On the one hand, they increase their stake in the JAC Volkswagen joint venture from 50 to 75 percent and thus take control of the management. Secondly, VW takes over 50 percent of JAG (not to be confused with JAC), the state-owned parent company of JAC. Nothing changes in the other two joint ventures with SAIC and FAW.

    "With the capital increase, Volkswagen is paving the way for the expansion of the electric model range and infrastructure," the Wolfsburg-based company wrote in a message. With the expansion of the position, the company could "take the next step in its electrification strategy in China". Five more models are planned by 2025, and a plant for electric cars and a research and development center are also to be built.

    VW has no objections from the government to fear: The remaining 50 percent in JAG is held by the government of the Anhui province, which also signed the joint letter of intent. VW points out that the transaction should be completed by the end of the year, subject to regulatory approvals, but a veto seems unlikely.

    In addition, Volkswagen is investing around one billion euros in a stake in the Chinese battery manufacturer Gotion High-Tech (also referred to as Guoxuan in other reports) and will become the company's largest shareholder with 26 percent. The participation is intended to secure the future need for battery capacity for the Chinese electric models. VW emphasizes that it is the first international OEM to invest directly in a Chinese battery supplier. Here, too, the transaction is expected to be completed by the end of 2020, subject to approval.

    "The segment of electric cars is growing rapidly and offers great potential for JAC Volkswagen," says VW boss Herbert Diess. "With our strategic stake in Gotion, we are also actively promoting the development of the battery cell in China." Gotion is currently in the cetrification process in order to qualify as a battery supplier for VW. The battery cells could then also be installed in MEB-Stromer.

    Alliance with Ford before graduation

    China is still an important market for Volkswagen, but there is also an update from the USA: Cooperation with Ford is making progress. The supervisory board of the VW group has approved further projects of the global alliance with Ford formed last year. "This means that the corresponding contracts between the two parties are about to be concluded and should be signed shortly," VW writes.

    The plans include that Ford will use Volkswagen's Modular Electric Drive Kit (MEB) for an electric model in Europe. Other projects, such as the VW investment in Argo AI, a software company belonging to Ford, have not yet been decided. VW makes it clear, however, that no capital links with Ford are planned.

    Personnel rotation in development

    In addition, Volkswagen announced a group-wide staff rotation in technical development and the series: Matthias Rabe, currently CTO of the Volkswagen brand, will become the Technical Development Director at Bentley on August 1. He succeeds Werner Tietz, who will move to Seat as Head of Technical Development on July 1. Werner Tietz succeeds Axel Andorff, who will also head the Midsize and MEB series at Škoda on July 1. He succeeds Matthias Glodny, who will be head of the modular system, drives and modules series at the Volkswagen Passenger Cars brand. (China), (Ford), (Personnel)
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