(Yicai Global) Dec. 25 — A Chinese joint enterprise beneath Volkswagen Group purchased a passenger automobile asset from the JV’s Chinese partner Anhui Jianghuai Automobile Group for CNY770 million (USD117.9 million) yesterday.
Volkswagen Anhui — previously JAC Volkswagen Automotive — will invest in the at the moment idle plant, Anhui Jianghuai Auto mentioned in a statement yesterday. The facility mainly manufactured sport utility cars and sedans before halting manufacturing last 12 months.
The statement omitted point out of Volkswagen Anhui’s article-acquisition company strategies.
Shares of Jianghuai Car [SHE:600418] were up 1.41 percent at CNY12.20 (USD1.86) in midmorning investing.
The previous JAC Volkswagen is a 50/50 JV Volkswagen and Anhui Jianghuai Car Group set up in 2017 that launched the Sihao electrical motor vehicle brand name in 2018. They improved money in the JV in July, lifting VW’s keeping to 75 percent and dropping Jianghuai’s to 25 p.c.
VW will authorize JAC Volkswagen to generate its mainstream marques and EV items now that it controls it, Anhui Jianghuai Vehicle claimed in an previously statement. The JV will step by step raise its ability and find to flip out up to 400,000 automobiles via to 2029. The project’s financial commitment is projected to overall about EUR1 billion (USD1.2 billion).
Editor: Ben Armour, Xiao Yi