Wednesday, February 7, 2018

Volkswagen in talks with China's JAC for electric cars

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Volkswagen in talks with China's JAC to make electric cars.
It seems that the electric car manufacturing race will heat up beyond the measures in the near future, almost all the giants of the automotive industry is exploring his options to produce electric cars that will be the need of the hour soon The Volkswagen group announced Wednesday the company is currently in talks for a joint venture that will focus on the development of electric vehicles with Anhui Jianghuai Automobile of China, or JAC.
The emission standards are tightening day by day and Tesla has already pioneered the manufacture of electric vehicles has left a huge gap between them and other manufacturers who still make internal combustion cars The small but important market is untapped until now leave a big void to fill that Tesla can perform only the Volkswagen scandal emissions also makes it important for them to save a portion reputation and contribute to the environment.
The German giant has signed a memorandum of cooperation with Anhui Jianghuai China Co Automotive for a potential partnership, the companies said in separate statements JAC said that the two will be equal owners of the joint venture, and hope to reach a formal agreement within five months, however, no financial details were disclosed.


Companies also benefit from the Chinese government's policy has been modified to stimulate the development of electric vehicles communist country sees electric vehicles as an opportunity for China to seize the emerging industry without established competitors from China is now the biggest auto market by unit sales and has the potential to take a leading role in this development of electric vehicles under the communist government rules, foreign automakers must tie up with local partners to produce cars in China.
As we want to be at the forefront of research e-mobility, Volkswagen Group is before exploring all options to establish a close and mutually beneficial partnership with JAC, said CEO Matthias Muller Volkswagen The Company targets sales of one million electric vehicles one year globally by 2025 Volkswagen takes more than a third of its global vehicle sales from China after three decades of operations there, currently two partnerships SAIC Motor Corp. in the country in Shanghai and FAW Group Corp northeastern China.
Chinese buyers like all the others were put off by the limited travel range of electric vehicles and concern for the safety of the batteries catch fire reports but the government is working to encourage sales by offering PON, including the exemption of taxes sales and quotas on new registrations Even though, Anhui Jianghuai Automobile and JAC are not well known internationally, but it ranks 9th among automotive brands in the Chinese market with the total number of cars and SUV retailed the company already sells an all-electric sedan, IEV the all-electric models are sold in modest numbers but JAC revealed that sales increased 400 percent to IEV 2331 vehicles making a big player in China .
This is in tandem with review of Volkswagen current strategy calls for accelerating the development of electric vehicles over the next decade, Volkswagen plans to develop around 30 new electric car models battery, which should be around 25 the automaker's total global sales.
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