Volkswagen to Take 50% Stake in Parent of Chinese Car Maker Jianghuai
29 May 2020 - 12:38PM
Dow Jones News
By Martin Mou
Volkswagen AG has agreed to acquire a 50% stake in the parent
company of Shanghai-listed Anhui Jianghuai Automobile Group
Corp.
After finalizing the investment deal, Volkswagen is also
expected to increase its stake in its joint-venture with Jianghuai
Automobile to 75%, the Chinese car maker said Friday, without
disclosing financial terms of the deal.
The two companies plan to spend 1 billion euros ($1.11 billion)
on raising the annual output of the joint venture to
350,000-400,000 units by 2029, Jianghuai Automobile said.
Volkswagen might also introduce new models to the joint venture,
including popular brands of the Volkswagen family and new-energy
vehicles, it said.
Jianghuai Automobile's parent is currently wholly owned by the
state-owned Assets Supervision and Administration Commission of
Anhui province, where Jianghuai is based.
The commission and Volkswagen will increase their investments to
each hold a 50% stake in the Chinese car maker's parent Anhui
Jianghuai Automobile Group Holding.
Write to Martin Mou at martin.mou@wsj.com
(END) Dow Jones Newswires
May 28, 2020 22:23 ET (02:23 GMT)
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