Volkswagen strengthens its investment in China | FASTENER EURASIA MAGAZINE
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Volkswagen strengthens its investment in China

German carmaker Volkswagen plans to invest 2.1 billion euros (about 2.3 billion U.S. dollars) in China to develop its electric vehicle business in the country.

With an investment of 1 billion euros, Volkswagen will acquire 50 percent of JAG, the parent company of Anhui Jianghuai Automobile Group Corp., Ltd. (JAC Motors), and increase its stake in JAC Volkswagen to 75 percent, according to the agreement signed in Beijing on May 29.

In another transaction, Volkswagen will pay 1.1 billion euros to acquire a 26.47-percent share of Gotion High-tech Co., Ltd., a Hefei-based manufacturer of electric batteries, becoming the latter's largest shareholder.

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.

The two sides will carry out strategic cooperation in the field of electric vehicle batteries. Gotion will become a certified supplier of Volkswagen.
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.

Herbert Diess, CEO of Volkswagen AG, said the company, together with strong and reliable partners, is strengthening its electrification strategy in China. Its electric car business 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.