Volkswagen E-Golf VW can really make good electrical power golf?
Volkswagen, China's JAC in talks to make electric cars.
September 7, 2016 by David Mchugh and Joe Mcdonald.
In this Oct. 5, 2015, file photo, Volkswagen VW sign German automobile company is displayed in the building detailing a company in Berlin Volkswagen Truck Bus, an arm of German carmaker Volkswagen is buying a minority stake in Navistar two companies also said Tuesday, Sept. 6, 2016, they will enter a joint venture which will market the parties to the source for companies AP Photo Markus Schreiber, file.
German automaker Volkswagen said on Wednesday it is in talks on forming a joint venture to develop electric vehicles with Anhui Jianghuai Automobile of China, or JAC.
The move is part of a new push Volkswagen in electric vehicles after its reputation was damaged by a scandal on diesel vehicles rigged to cheat on Volkswagen emission testing is to propose 30 new models over the next ten years .
Electric vehicles to date are not an important part of the global car market, but companies are working on them in the hope that battery life will improve and respond to stricter emissions standards.
Volkswagen announced Tuesday it has signed a protocol agreement with Jianghuai assess the possibility of joining forces No financial details were disclosed.
The announcement also follows the Chinese government policy changes to stimulate the development of electric vehicles communist leaders see electric vehicles as an opportunity for China, the largest car market in number of units sold, enter a leading role in an emerging industry without established competitors.
Beijing said automakers last year will be allowed to create separate brands of electric vehicles that will face the least complex property and other regulations than traditional internal combustion manufacturers that enabled a wave of Chinese technology companies without automatic background to obtain licenses to build electric cars.
They want to increase the technical capacity of the sector and they want better players to enter the sector, said Namrita Chow, an analyst at IHS Automotive.
Chinese buyers have been put off by the limited travel range of electric and reports of batteries catching fire but the government is trying to encourage sales by offering incentives, including exemption from sales taxes and quotas on new plates registration.
Jianghuai is little known abroad, but ranks No. 9 among automotive brands in China in the total number of cars and commercial vehicles sold The company already sells an all-electric sedan, IEV.
Demand in China for all electric models is modest but Jianghuai said EVG sales in April, last month reported, increased by 400 percent to 2,331 vehicles in the first quarter sales were 4,410 units.
Jianghuai total sales of cars, trucks and SUVs in the first seven months of 2016 rose 11 4 percent over the previous year to 370,000 units, according to the China Association of Automobile Manufacturers, an industry group.
Jianghuai is already quite a player in China, said Chow.
The company announced an agreement in April to provide for the manufacture NextEV, electric starter car brand supported by Chinese technology companies The first cars are due next year.
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