Volkswagen Group China has signed a memorandum of understanding (MoU) with Anhui Jianghuai Automobile Group (JAC) and SEAT.

The three groups will together establish a new R&D centre with a focus on developing electric vehicles, connectivity and autonomous driving technology plus a platform for battery electric vehicles (BEV).

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The SEAT brand will be introduced to China by 2020/2021.

"Electrified cars are the future of mobility and China is at the forefront of developing sustainable e-mobility, said Jochem Heizmann, president and CEO of VW Group China.

"We are proud to have the opportunity to further collaborate with a trusted partner in developing e-mobility technology. It represents another major step in the group's overall China strategy."

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Under the MoU, SEAT will become a shareholder in JAC Volkswagen, through either a capital increase of JAC Volkswagen or a share transfer from VW Group China. This will see the SEAT brand launched in China. 

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JAC Volkswagen, FAW-Volkswagen, SAIC VOLKSWAGEN and Volkswagen Group China claim they lead the way in the development of e-mobility, with the introduction of 40 locally produced models to the market within the next seven to eight years.