Volkswagen to increase its stake by 25% in JAC Volkswagen joint venture.

Volkswagen is set to increase its stake by 25% in JAC Volkswagen joint venture, a manufacturer of multi-utility electric vehicles, for $1.1bn. This amount includes the acquisition of 50% of JAG, the parent company of the Volkswagen partner JAC, and an increase in the stake in JAC Volkswagen from 50% to 75%. By gaining management control, Volkswagen is paving the way for more electric models and infrastructure. The parties intend to close the deal by the end of the year, subject to customary regulatory approvals. “I am delighted with this strategic milestone in our mutual and trusted relations as Volkswagen takes a strategic role in a state-owned company for the first time, as well as investing direct in a Chinese battery supplier. These investments shape the character of Volkswagen in China, making it a more localized, more sustainability-focused mobility company. By opening up the market, China is giving Volkswagen new business opportunities,” Stephan Wöllenstein, Volkswagen Group China CEO.