The Volkswagen Group has been increasing its efforts in the electric vehicle segment ever since the ‘DieselGate’ scandal. Mostly through its new mission to build 2 to 3 million all-electric cars a year and unveil 30 new models by 2025.
Today, we learn that that the German automaker signed a joint venture memorandum of understanding with China’s Anhui Jianghuai Automobile Co. that would effectively allow VW to accelerate their production of electric vehicles by mass producing them in China as well as sharing technology with the local manufacturers to increase the amount of EVs in the country.
According to the official statement to the Shanghai Stock Exchange (which you’ll most likely have to use Google Translate to read), the two companies are looking to come together and collaborate towards a “cooperative target” of increasing electric vehicle production. The intentions of this agreement are for VW to work towards being at the forefront of EV production, especially with their recent emissions scandal, and China looking to better the local environment with more cleaner vehicles on their roads.
Under this memorandum of understanding (MOU), starting within the next five months, the two companies would both put in 50% of the capital, making them equal partners, and would, initially, “build a competitive portfolio of electric vehicles as fast as possible using existing mature platforms.”
Via Bloomberg, Volkswagen’s CEO, Matthias Mueller, stated that he expects more than “4 billion euros ($4.5 billion) to be invested in China this year and to have 15 new-energy vehicles to the market within five years.”
Mr. Mueller went on to state the following:
“As we aim to be at the forefront of e-mobility, Volkswagen Group is looking forward to explore all options to set up a close and mutually beneficial partnership with JAC. We believe this cooperation would not only benefit our two organizations, but would also be of great value to our customers, a sound environment and the Chinese society in general.”
Additionally and with all those new EVs going to production in the near future, VW is set to clarify its position on battery supply by the end of the year.