Jul 10, 2018 (China Knowledge) - Anhui Jianghuai Automobile Co., Ltd (JAC Motors), a Chinese state-owned automobile and commercial vehicle manufacturer, announced on Tuesday morning that it plans to build a new energy vehicle research and development (R&D) center along with two subsidiaries of German automaker Volkswagen and jointly develop a pure electric vehicle platform which takes the total estimated investment value to EUR 500 million.
The announcement revealed that JAC Motors has signed a memorandum of understanding (MOU) on joint venture cooperation with Volkswagen (China) Investment Co., Ltd and Volkswagen's Spanish subsidiary Seat. The long-term goal of the R&D center, which is expected to be completed in 2021, will focus on electric vehicles, vehicle networking and autonomous driving technologies.
In December last year, JAC Motors and Volkswagen China jointly established a Sino-foreign joint venture company, Jianghuai Volkswagen Automotive Co., Ltd to integrate R&D, production and sales departments in order to proliferate better innovation, manufacturing and sales revenue for new energy vehicles and their components.
In the future, Volkswagen's Spanish subsidiary Seat will take at least 1% stake in the Sino-foreign joint venture company and allow it to produce products suitable for the Chinese market based on the R&D of Seat products. The brand is expected to be introduced in 2020/2021.
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