Shanghai, June 12, ZXZC - On June 1, under the joint witness of the Prime Ministers of China and Germany, Volkswagen Group and Anhui JAC Automobile Group Co., Ltd. formally signed an agreement to set up a joint venture with each part holding 50% share. They are to develop, produce and sell new energy vehicles.

 Spy shots are not true. The first model is small SUV

Insider of Volkswagen China told that the first product is a multi VW's electric up!.

Reasons for the cooperation between JAC and VW.

It seems that VW and JAC does not enjoy an equal status in the society. However, insider believes that JAC is powerful in the field of new energy, which may be one of the reasons contributing to their cooperation. In 2016, JAC's iE V series of new energy vehicles sold 18,369 units, an increase of 74.69% compared to the previous year; revenue of new energy vehicles was 3.269 billion yuan; they also received 3.574 billion yuan of subsidy from the government. It can be seen that the new energy vehicles have become the main source of revenue of JAC. VW decided to cooperate with JAC mainly because of JAC's strength in the field of new energy.

Another reason is political. According to China's policy,VW must find a partner to obtain production license if they want to develop new energy business in China. It is very essential that JAC can persuade Prime Ministers of both China and Germany to recommend JAC. Besides, JAC's production equipment and factory as well as personnel team also are very important resources.