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Volkswagen Plans to Invest $12 Billion on China New Energy Cars

Bloomberg News
November 16, 2017, 1:30 PM GMT+11

• VW, Partners to make investment, launch 40 locally made models
• Ford is also investing in China electric cars with Zotye

Volkswagen AG will invest 10 billion euros ($12 billion) with its partners to make and develop a range of new-energy vehicles in China as automakers step up investments in low-emission models in the world’s biggest auto market.

Volkswagen will make the investments by 2025 and launch 40 locally produced vehicles, its China head Jochem Heizmann told reporters in Guangzhou Thursday. The European carmaker’s venture with Anhui Jianghui Automobile Group will start production of electric vehicles in the first half of next year while sales will start in the second half.

VW joins Ford Motor Co. in increasing investments in electric vehicle development in China as the country will require most automakers to obtain a new-energy vehicle score linked to the production of various types of zero- and low-emission vehicles.

In May, VW received green light from the government to set up a joint venture with the state owned Chinese automaker to make electric cars. The German carmaker sold 2.5 million vehicles in China in the first ten months. The Wolfsburg, Germany-based carmaker has previously said it plans to sell 400,000 units of new-energy vehicles a year by 2020 and increase that number to 1.5 million units by 2025.

Last week, Ford said it will invest 5 billion yuan ($753 million) with partner Anhui Zotye Automobile Co. to make and sell small electric cars in China.
— With assistance by Yan Zhang

https://www.bloomberg.com/news/arti...est-10-billion-euros-on-china-new-energy-cars