Volkswagen announces investment in Chinese electric cars
The company announced that it will increase its participation in the Asian region, with the purchase of the JAG business group
Volkswagen announced that it will invest $ 2.2 billion in the electric vehicle sector in China.
Specifically, the company will increase its participation in the Chinese electric car company JAC through a capital increase in it that will go from the current 50% to 75%.
To do this, Volkswagen will acquire half of the Chinese business group JAG, JAC’s parent company. Transaction in which it will invest close to more than 1,000 million dollars
In addition, VW announced its intention to acquire 26% of the shares of the Chinese battery firm Gotion High-Tech for about 1.2 billion, making it its largest individual shareholder. The operation is expected to take place later this year.
The association will allow Volkswagen to increase its technical knowledge in the field of batteries. “VW reinforces its electrification strategy in China alongside strong and reliable partners”, said Herbert Diess, CEO of the Volkswagen group.
The People’s Republic of China is considered a leader in the electric vehicle sector, a segment that is experiencing rapid growth in the nation. The Chinese government wants to combat poor air quality in the main cities of the country and become a technological leader in this area.