On November 2, JAC motor group announced that the company had received a notice from JAC Volkswagen that the capital increase of JAC Volkswagen had been approved by Anhui development and Reform Commission. According to the agreement, JAC and VW China investment will increase capital to the joint venture company JAC Volkswagen. Among them, VW China should subscribe for the new equity of JAC Volkswagen equivalent to 4.52 billion yuan of registered capital, and JAC automobile should subscribe for the new equity of JAC Volkswagen equivalent to 838 million yuan of registered capital.
After the completion of the above subscription, Volkswagen China will become the shareholder of JAC holding, holding 50% of the equity of JAC holding, and the state owned assets supervision and Administration Commission of Anhui Province will hold 50% of the equity of JAC holding and still control JAC holding. Meanwhile, VW China’s stake in JAC will rise to 75% and JAC’s will drop to 25%.
Regarding the share reform, JAC announced that the move marks a new stage of strategic cooperation between JAC and Volkswagen, the establishment of China’s production base for new energy vehicles of Volkswagen Group in Anhui, and the settlement of headquarters of new energy vehicle R & D center of Volkswagen Group in Hefei.
With the increase of VW China’s shareholding in JAC Volkswagen, VW Group will introduce more models into the joint venture. Jac started with passenger cars, entered the car market in 2004, expanded the new energy vehicle sector in 2015, and established JAC Volkswagen Co., Ltd. as a joint venture with Volkswagen China at the end of 2017.
According to the information disclosed in the announcement, Volkswagen Group promised to award JAC Volkswagen 4-5 pure electric vehicle brand products. In addition, with the permission of Chinese law, VW will give priority to the production of plug-in hybrid vehicles and fuel vehicles such as VW class B and C in JAC Volkswagen.
According to the plan, JAC Volkswagen will strive to achieve the annual output of 200000-250000 vehicles and the total income of 30 billion yuan by 2025, and the annual output of 350000-400000 vehicles and the total income of 50 billion yuan by 2029.