The big news today is that Volkswagen AG has announced it will acquire 50% of Hefei-based Anhui Jianghuai Automobile Group Holdings Ltd.
This company is currently wholly owned by Anhui Provincial SASAC.
Jianghuai Automobile Group Holdings is the parent of Anhui Jianghuai Automobile Group Corp., Ltd.
(i.e. JAC Motors, the manufacturer). JAC Motors, listed on the Shanghai Stock Exchange, is widely held, in which Jianghuai Automobile Group Holdings owns a 25.23% stake. VW AG is not directly buying into JAC Motors though.
Additionally, VW will increase its stake in JAC Volkswagen Automotive Co., Ltd., its 50:50 EV joint venture with JAC Motors, to 75% by purchasing 25% from its partner. VW will be investing around €1 billion on these acquisitions.
JAC Volkswagen (site
) markets the Sihao E20X but -- what perhaps most do not realize -- does not yet manufacture the car. It is made by JAC Motors as JAC-VW's factory is currently under construction; the R&D Center is nearing completion. Recall that JAC Volkswagen was the 15th company to acquire EV production qualification from NDRC in 2017 before the rules were changed. [Contrast with JAC-Nio which has a dedicated factory and produces its vehicles there but does not have a separate license]. JAC-VW delivered 3875 vehicles (wholesale) in 2019; none in 2020. Retail data show 109 units of E20X were registered in the first four months of this year.
VW AG will invest another €1.1 billion in battery manufacturer Guoxuan High-tech Co., Ltd. ("Gotion") for which it will receive a 26.47% stake, becoming its largest shareholder. This is not related to the JAC deals.