Originally Posted by Leo
This is a really interesting development. As I get it, JAC is in trouble for quite some time now with its passenger car sales about halved last year. I don't know about the truck division, which is probably the more important part of the business.
I wonder if Volkswagen plans to increase its share in JAC Holdings once the limitations on foreign ownership of car companies are fully lifted (2022?). I could see VW turn JAC into a full blown "VW China" where they can control everything without Chinese interference. It probably beats starting from scratch or trying to take control of SAIC-VW at a much higher price.
I think you will see VW use JAC (JAG) as the entry e-mobility brand. VW still has a great relationship with SAIC and FAW respectively.
With the Truck division, you might see VW sell that stake to its Traton truck group and gain more foothold in the Chinese trucking area.
In fact, rumors around 2019 said VW (Audi) was interested in purchasing 10% more into the FAW JV. It would make the JV a 50/50 partnership, instead of the current 60/40 in FAW's favour.