VW Signs MOUs with FAW and JAC

Volkswagen AG agreed will cooperate with FAW and the China Intelligent and Connected Vehicles Research Institute on technologies including e-mobility, connectivity and autonomous driving.

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VW said on Tuesday it had signed memorandums of understanding (MOU) with the two groups during a visit by Chinese Premier Li Keqiang to Germany.

Volkswagen aims to sell around 1.5 million new energy vehicles in China in 2025. To reach the goal, it plans to roll out around 40 locally made electric vehicles and plug-in hybrids under the VW, Audi, Skoda and Seat brands as well as under a new joint venture with JAC announced on Monday.

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Through 2022, Volkswagen and its partners in China will invest about €15 billion in future fields such as e-mobility, autonomous driving, digitalization and new mobility services. In addition to investments, this will also include expenses for research and development for new technologies and new mobility projects.

Earlier on Monday, the 9th of July, China Premier Li keqiang and German Chancellor Angela Merkel, JAC signs a memorandum of understanding with Volkswagen group (China) and SEAT in Berlin Germany. It will promote and deepen technology exchanges and economic & trade cooperation between two countries.

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According to the memorandum of understanding, JAC Group, Volkswagen group (China) and SEAT will jointly establish an R&D center to develop new energy vehicles, car networking, and automatic driving technique, spare parts and core technologies, which can meet the need of Chinese market. The new R&D center will be established in 2021. The SEAT brand will also be introduced to Chinese market from 2020 to 2021. Besides, on basis of each side’s technology, JAC and VW joint venture Company will develop a competitive pure-electric vehicle platform. The new platform will provide more products for Chinese as well as global customers.

According to Dr. Herbert Diess, the CEO of Volkswagen AG and Chairman of the Board of Management of the Volkswagen Passenger Car brand:

The car of the future will not just be powered by electricity. It will also be digitally connected and will increasingly drive itself. This will prevent accidents, reduce traffic congestion and drastically reduce noise pollution and exhaust emissions. By expanding these partnerships, the Volkswagen Group plans to strengthen its position in China’s critically important market.

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