Volkswagen AG is in final talks to seal its largest investment deals with Chinese electric vehicle (EV) firms, as the German automaker accelerates its push into the world’s largest market for environmentally friendlier cars, reported Reuters.
The firm is poised to buy 50% of Anhui Jianghuai Automobile Group Holding, the parent of EV partner JAC Motors, for at least RMB 3.5 billion ($491 million), said two Reuters sources.
It is also set to become the biggest shareholder of EV battery maker Guoxuan High-tech Co Ltd, the sources said, adding both deals could be announced as early as Friday.
The deals highlight how Volkswagen is keen to retain its status as the largest foreign automaker in China even as government virus-busting measures decimate sales, in the face of encroaching rivals such as Tesla which last year became the first foreign automaker to wholly own a car plant.
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