Volkswagen invests 2.1 billion euros in China business with electric vehicles
26. November 2020The German car giant Volkswagen intends to invest around 2.1 billion euros in its China business with electric vehicles. The company describes this step as the next chapter for its business activities in China. The sum is divided into 1 billion euros to increase the shareholding in JAC Volkswagen, the VW joint venture in China for electric vehicles, and a further 1.1 billion euros for a stake in the US-based battery company Gotion.
The €1 billion investment in the Chinese joint venture JAC Volkswagen includes a 50 percent stake in JAG, the parent company of JAC Automobile Group. As a result, Volkswagen’s stake in JAC Volkswagen will increase from 50 to 75 percent. By increasing its shareholding, Volkswagen also gains control and management of the company. There are plans to develop further electric vehicles and the corresponding infrastructure for the Chinese market. This should help Volkswagen’s business in China to break even and achieve sales of 1.5 million electric vehicles in 2025. Volkswagen JAC Volkswagen was founded in 2017 and develops, produces and sells exclusively electric vehicles or New Energy Vehicles (NEVs), as these vehicles are often called in China.
The other €1.1 billion will make Volkswagen the largest shareholder in Gotion, an American subsidiary of Gouxuan High-Tech, with a 26 percent stake. The investment is intended to ensure the supply of batteries for the production of electric vehicles in China. Dr. Stephan Wöllenstein, Chairman of the Board of Management of Volkswagen Group China, said the project will make the company a local and sustainable car manufacturer and will create new business opportunities in the field of electric vehicles in China. Volkswagen is the first international automaker to invest directly in a Chinese battery manufacturer. The transaction will be completed by the end of this year if the regulatory authorities approve the transaction.
Electric vehicles and components must be CCC certified in order to be exported to China or manufactured locally. The CCC certificate was introduced in 2002 and is comparable to the European CE marking. If you need CCC certification in the automotive sector, China Certification is an excellent partner for you. We have been advising leading automotive suppliers and vehicle manufacturers on their CCC certifications for years.
For more information on how CCC certification, the CCC Self-Declaration and voluntary CCAP or CQC certification may affect your company, or for more information about CCC certification in general, the process, and the associated costs, please visit our website and our News Section where you will find current updates twice a week.
Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).
Please don’t hesitate to also use our chat-window in the bottom right corner if you have any questions. (Please check your browser settings if you can’t see the window)
You can also check out our free CCC-Brochure, which can be downloaded right here as a PDF file or you consult our book (in English) “A Brief Guide to CCC: China Compulsory Certification”, which can be found directly here on Amazon.
Here you can download our brochure about the CCC Self-Declaration.
Here you can download our brochure about the voluntary CCAP or CQC certification.
