The authorities in Beijing have approved an electric vehicle JV between Volkswagen and Anhui Jianghuai Automobile (JAC Motors).
JAC Motors said the venture, with a total investment of 5 billion yuan (USD730m), will have the capacity of producing 100,000 electric cars annually.
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According to the approval, issued by the National Development and Reform Commission (NDRC), models to be produced by the venture will be made and sold under a new brand and logo. The products will be sold to the domestic and international markets.
JAC-VW will use a production base owned by JAC Motors in Hefei, capital of East China’s Anhui province.
It is known that the project will set up new self-owned brand and trademark, create new technology co-operation and business model and expand both domestic and international markets.
The joint venture term is 25 years.
The project uses the current construction land of JAC and establishes pressing, welding, painting, assembling and battery package workshops, R&D centre, general power, working facility and production processing equipment, etc. to build the annual capacity of one hundred thousand electric passenger vehicles. The project is located in the Economic-Technological Development Zone in Hefei, Anhui.
