VW mulls buying big stake in Chinese electric vehicle maker
BMW agreed in October to buy control of its main joint venture in China for €3.6bn, and Daimler plans to increase its stake in local partner BAIC
Hong Kong/Frankfurt — Volkswagen (VW) is exploring purchasing a big stake in its Chinese electric vehicle joint venture partner JAC Motors and has tapped Goldman Sachs as an adviser on the plan, people with direct knowledge of the matter said. The move by VW, the largest foreign car maker in China, to buy into Anhui Jianghuai Automobile Group (JAC Motors) is the latest by foreign car makers to boost ownership in the world's biggest car market since Beijing relaxed rules in 2018. Rival German car maker BMW agreed in October to buy control of its main joint venture in the country for €3.6bn. And Daimler plans to increase its stake in local partner BAIC Motor. The stake purchase move shows that JAC would be a key player in VW's big global bet on electric vehicles and on strong Chinese demand for such vehicles. VW plans to shift a large part of its planned electric vehicle production in China to JAC if it ends up getting control of JAC, said one of the people. Foreigners were previously...
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