VW invests $3.2 billion into two Chinese EV market

Volkswagen has placed a major bet in the Chinese electric vehicle (EV) market as they have invested over $3.2 billion CAD (2.1 billion euros) in two separate deals announced on Friday.

The first deal will see VW invest approximately $1.6 billion CAD into the Chinese state-owned Anhui Jianghuai Automobile Group (JAC Motors), giving it a 50% stake in the company.

The investment will also see VW take full management control of the its existing electric vehicle joint venture with JAC by raising its stake to 75% from 50% (via Reuters).

The other $1.6 billion CAD of the deal will give VW a 26.5% stake of Guoxuan High-tech Co Ltd, a maker of electric vehicle batteries. In the deal, VW will become the company’s biggest shareholder.

Despite the coronavirus pandemic making a major impact on many auto manufacturers, Volkswagen’s China chief Stephan Woellenstein said the deals show the German automaker is not changing its long term EV strategy in China.

Are you buying a Tesla? If you enjoy our content and we helped in your decision, use our referral link to get three months of Full Self-Driving (FSD).
Previous Article

Tesla now sells the Model 3 All Weather Protection Kit on their website, as well as a new PPF kit

Next Article

Canadian Tesla Model 3 owner files class action lawsuit against Tesla over paint issues

You might be interested in …

Tesla Battery Pack

How a Canadian connection is helping Tesla create batteries that will make EVs more affordable than their gas counterparts

One of the leading barriers to widespread electric vehicle (EV) adoption is the high initial upfront cost compared to traditional internal combustion engine (ICE) vehicles. But a small group of Canadian researchers is helping Tesla […]