Volkswagen has confirmed it is in early stage talks with Chinese state-owned vehicle manufacturer Jianghuai Automobile Company (JAC) over possible co-operation, according to local reports.

The head of Volkswagen's Chinese operations, Jochem Heizmann, reportedly confirmed that talks between the two companies are under way but declined to specify which specific areas are being targeted.

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It is thought that the two companies may be interested in joining forces in electric vehicles, a significant growth segment of the China vehicle market. This was not confirmed by Heizmann, however.

Volkswagen has two major vehicle manufacturing joint ventures in China, with FAW Group Corporation and SAIC Motor Corporation.

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