Volkswagen, a German carmaker, and Chinese Motor JAC (Anhui Jianghuai Automobile Group) will create a joint venture for the production of electric cars, Rambler News reported on Monday.
The National Development and Reforms Commission of China has approved the construction of a manufacture intended to produce up to 100,000 electric cars per year. The cost of the project is 5.1 billion yuan ($740 million). Approval is obtained, but before signing the contract with JAC Motor, it is necessary to complete some administrative procedures, a representative of Volkswagen said.
Volkswagen is the largest foreign automaker in China. The company already has a joint venture in China set up with FAW Group and SAIC Motor.