Volkswagen is in final talks to pay US$491 million for an electric carmaker in Anhui, sealing its biggest acquisition in China
- Volkswagen is poised to buy 50 per cent of Anhui Jianghuai Automobile Group for at least 3.5 billion yuan, according to people familiar with the matter
- Jianghuai owns JAC Motors, Volkswagen’s electric vehicle partner
The firm is poised to buy 50 per cent of Anhui Jianghuai Automobile Group Holding, the parent of EV partner JAC Motors, for at least 3.5 billion yuan (US$491 million), the people said on condition of anonymity as the matter was private.
It is also set to become the biggest shareholder of EV battery maker Guoxuan High-tech, the people said, adding both deals could be announced as early as Friday.
Volkswagen declined to comment on the deals, details of which are reported here for the first time. JAC and Guoxuan declined to comment.
The deals highlight how Volkswagen is keen to retain its status as the largest foreign carmaker in China even as government virus-busting measures decimate sales, in the face of encroaching rivals such as Tesla Inc which last year became the first foreign carmaker to wholly own a car plant.
At the end of last year when 25 million vehicles were sold in China – and just before the coronavirus was first reported in December – the government targeted 25 per cent of 2025 annual vehicle sales to be made up of new energy vehicles.