Industryweek 21784 Jac Ievs 1
Industryweek 21784 Jac Ievs 1
Industryweek 21784 Jac Ievs 1
Industryweek 21784 Jac Ievs 1
Industryweek 21784 Jac Ievs 1

China's in Joint Venture with VW to Produce Electric Cars

May 22, 2017
Volkswagen's China CEO Jochem Heizmann had said during the Shanghai auto show last month that VW expects to sell around 400,000 new-energy vehicles in China in 2020.round 400,000 new-energy vehicles in China in 2020.

China's JAC Motors said on March 22 that it had received government approval for a $734 million joint venture with Volkswagen to produce 100,000 electric cars per year.

Volkswagen, the world's largest automaker, is also the market leader in China. It sold four million cars in the country last year but only a few hundred of them were "green" despite rapid growth in electric vehicle sales in China.

China has for years been the world's largest automotive market but also more recently became the top market for electric vehicles, helped by government purchase incentives.

JAC, or Jianghuai Automobile Group, which is based in the eastern province of Anhui, said in a filing to the Shanghai stock exchange that the partnership with VW had been green-lighted by China's top economic planning agency.

China requires that foreign automakers form joint ventures with its manufacturers.

Volkswagen already makes cars in partnership with other Chinese manufacturers.

Volkswagen's China CEO Jochem Heizmann had said during the Shanghai auto show last month that VW expects to sell around 400,000 new-energy vehicles in China in 2020.

Chinese sales of "new energy" vehicles jumped 53% last year to 507,000 units, fueled by government incentives aimed at fighting chronic air pollution.

A Chinese government proposal published in September would, if finalized, require manufacturers to produce a certain percentage of clean-energy vehicles as early as 2018.

Copyright Agence France-Presse, 2017

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!