VW joins JAC for third joint venture in China

The Volkswagen I.D. electric concept car is displayed at the 2016 Paris auto show. [Photo/China Daily]

German automaker Volkswagen signed a memorandum of understanding with Jianghuai Automobile in September to set up a 50:50 joint venture for new energy vehicles. The two have entered into discussions to evaluate the prospects and feasibility of a company focusing on research, manufacturing and sales of new energy vehicles and spare parts. They aim to sign a formal agreement on their partnership by February. The move will make VW the first international automaker to have three passenger car partners in China, the two existing ventures being FAW-Volkswagen and SAIC Volkswagen.