Electric cars: Volkswagen invests two billion euros in China – La Gazzetta dello Sport

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Wolfsburg will take over 50% of Anhui Jianghuai Automobile Group by increasing the weight of the Jac joint venture from 50 to 75%. It also acquires 26.5% of the electric battery manufacturer Guoxuan

Volkswagen looks to an increasingly future green with major investments in China. The Wolfsburg brand has signed agreements with two Chinese electric vehicle (EV) companies to accelerate entry into the eco-car market. It does this by spending around two billion euros on the purchase of 50 percent of Anhui Jianghuai Automobile Group Holding and increasing the weight of the joint venture Jac Volkswagen from 50 to 75 percent for about 1 billion. In addition, in a separate operation, Volkswagen said it will pay 1.1 billion euros to acquire 26.5 percent of the high-tech electric battery manufacturer Guoxuan, thus becoming its largest shareholder. The company, which is based in Hefei as Jac, will supply batteries to its Ev models in China. Important investments also in the Far Eastern country, given that the government has set the target of 25 percent by 2025 of annual sales of new energy vehicles (Nev).

Volkswagen, desire to dominate the market

The investments concluded by Volkswagen (the shares of Jac and Guoxan today reached a daily ceiling of 10 percent) are even more important for the moment that the whole world is experiencing because of the coronavirus. The desire of the German brand is to maintain its status as the first foreign car manufacturer in China since the government began to loosen the ownership rules in 2018, with BMW taking control of the local joint venture. All in the face of VW’s weight competitors who are trying to make their way in the East. Like Tesla, for example: the same one that in 2019 became the first foreign car manufacturer to own a car factory entirely in China.

companies bought by VW

The Anhui Jianghuai holding is wholly state-owned and 25.23 percent owned by Anhui Jianghuai Automobile Group Corp (Anhui Jianghuai Automobile Group Corp), which is valued at $ 1.84 billion on the market ($ 1.66 billion of Euro). The acquisition of most of Guoxan’s shares, based in Hefei such as Jac, would mean the first direct acquisition of a Chinese battery manufacturer. Volkswagen buys around 26.5 percent through a placement of discounted private shares: 18 percent from Zhuhai Guoxuan Trading, main shareholder, 12 percent from founder Li Zhen and 2.5 percent from Son Li Chen. Volkswagen also has joint ventures with car manufacturers China Faw Group Corp and Saic Motor Corp. The goal is to sell 1.5 million new energy vehicles per year in China by 2025. “Our brand is constantly looking for relationships to strengthen and deepen with other partners, “they said Reuters (which gave a preview of the news) those of the Wolfsburg brand. “We will therefore explore all possible options together with stakeholders to ensure long-term success.”



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