Shanghai (ZXZC)- Recently, a report said that Volkswagen Group is going to raise its equity in China-based joint ventures, including SAIC Volkswagen (SAIC VW). On March 18, SAIC Motor, SAIC VW's Chinese parent company, officially issued an announcement to deny the news.

“SAIC Motor and Volkswagen Group didn't have any talk about the matter of “raising foreign investor's equity in joint venture”. Besides, Volkswagen has not formally come up with the plan to discuss about the equity change to SAIC Motor,” the Shanghai-based automaker said in the announcement.

SAIC Motor also stated whether foreign investors propose to “adjust ownership” should depend on respective performance for each joint venture and Chinese shareholders' contribution and right of speech in the joint venture. Under the long-term cooperation, both SAIC Motor and Volkswagen have made great efforts to the joint venture's development with equal right of speech on crucial issues.

The announcement also shows that SAIC Motor is proactively exploring a deepen collaboration in such areas as new energy, intelligent connectivity and premium car brands with Volkswagen. Moreover, SAIC VW's new MEB platform-based new energy vehicle plant has been put into construction and the SAIC Audi program also proceeds as planned. Key decisions involving joint venture's future development, such as the equity structure adjustment, must be made by both parties in accordance with the principle of consensus.