JAC and VW inject fresh capital into Volkswagen Anhui joint venture
Volkswagen controls 75 per cent of Volkswagen Anhui and JAC Motors 25 per cent. The ownership structure will remain unchanged after the capital increase, and the investment will thus be made at the same ratio. Volkswagen will invest 4.875 billion yuan and JAC 1.625 billion yuan in the joint venture. The resulting 6.5 billion yuan corresponds to the 826 million euros mentioned above.
As the portal Gasgoo reports, citing official statements from JAC, the new cash injection will increase the joint venture’s share capital from 7.36 billion yuan to 13.86 billion yuan, the equivalent of around 1.76 billion euros. The planned investment will be “to deepen the strategic cooperation between JAC and Volkswagen China, enhancing Volkswagen Anhui’s overall capabilities and resilience against market volatilities,” according to the report.
Volkswagen Anhui was formerly called JAC-Volkswagen. After the Wolfsburg-based company was allowed to acquire a majority stake in the joint venture in 2020, JAC was removed from the name and the name of the province in which the headquarters is located was added instead. At the end of 2023, the company started production of the Cupra Tavascan, among others, which will be manufactured in Anhui for the global markets. The joint venture will apply to the relevant authorities for approval of the Chinese version of this model – called ID.UNYX. Another Volkswagen brand model will launch at the Chinese plant later this year.
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