Volkswagen looking to buy 50% of JAC's parent company

VW strengthen its electric vehicle line up further if they acquire JAC's parent company

Volkswagen’s push for vehicle electrification has become their fervent mission, what with the lingering effects of dieselgate. When they partnered with China carmaker JAC for their electric vehicles, they were already well on their way forward.

Volkswagen can’t seem to get enough of a good thing, though. In what was supposed to be a confidential deal, it was revealed by a report that the German marque is already in final talks towards the acquisition of Anhui Jianghuai Automobile (AJA) Group Holding. The kicker: AJA is an electric car specialist, and so happens to be the parent company (read: owner) of JAC.

If this deal pushes through, it will make Volkswagen the latest foreign car brand to expand company ownership in China. AJA currently holds a 25.23% share in JAC, and the joint venture gives VW a 50% share in the company. Such a share equates to at least 3.5B Yuan, or roughly a whopping USD 491 million. Further sweetening this deal, VW looks to be set on becoming the biggest shareholder of electric vehicle (EV) battery maker Guoxuan High-tech.

Add to that their ventures with State-owned China FAW Group and SAIC Motor, VW has already effectively covered their bases from petrol to diesel-fed engines, to green energy electric vehicles.

“Volkswagen consistently searches for ways to strengthen and deepen our relationships with local partners. In this regard we will explore possible options together with all stakeholders to secure long-term success,” Volkswagen was noted telling Reuters.

Locally, we already have a good number of Volkswagen-SAIC vehicles in the Santana, Lamando, Lavida, and even the Tiguan. Following the partnership with JAC, could it finally be possible that we can see an Asian-tailored version of the VW ID as well? That remains to be seen, but if VW remains as aggressive as they are, then it isn’t a far-fetched idea, is it?

Tags:jac saic volkswagen vw