Jianghuai Surges on Volkswagen China Electric-Car Joint VentureBloomberg News
VW planning 15 new-energy vehicles for China within five years
Joint venture would be Jianghuai’s first with foreign carmaker
Anhui Jianghuai Automobile Co., one of China’s top-selling makers of electric cars, climbed to the highest intraday level in almost three months in Shanghai trading after saying it was evaluating a new-energy vehicle joint venture with Volkswagen AG.
The shares rose as much as 9.4 percent and traded up 6.5 percent to 13.43 yuan as of 9:46 a.m., with the benchmark Shanghai Composite Index little changed. Jianghuai and Volkswagen said they may reach a formal agreement within five months on a venture in which each owns 50 percent.
Jianghuai is one of the last major Chinese carmakers without a foreign venture partner. Chairman An Jin had said in an interview in March that the company was in negotiations with Volkswagen, which has said it plans to introduce 15 new-energy vehicles to China’s market within five years.
Chief Executive Officer Matthias Mueller hasn’t pulled back from spending on Volkswagen’s largest market despite the company having set aside 17.8 billion euros ($20 billion) to cover costs of fixing diesel cars and the legal risks related to its emissions scandal. The automaker has said it’ll invest more than 4 billion euros in China this year.
Boosting electric vehicles sales in China would help Volkswagen meet stringent emission and fuel-economy standards. The government is mandating average fuel consumption of 5 liters per 100 kilometers (62 miles) by 2020, a drop from 6.9 liters per 100 km this year.
A joint venture with Jianghuai would be Volkswagen’s third in China, adding to partnerships with SAIC Motor Corp. and China FAW Group. Its German peers Daimler AG and BMW AG also have electric car brands under their joint ventures with BYD Co. and Brilliance China Automotive Holdings Ltd.
— With assistance by Tian Ying