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VW Anhui to invest additional 23.1 billion yuan in China's Hefei

Gabriella GasgooAutoNews 2023-06-21

Beijing (Gasgoo)- On May 28, Juergen Hasenpusch, Chief Financial Officer of Volkswagen (Anhui) Automotive Company Limited ("Volkswagen Anhui"), announced that the company plans to invest an additional 23.1 billion yuan in vehicle manufacturing and R&D in Hefei city, capital of China's Anhui province. 

Photo credit: Volkswagen Anhui

Among which, 14.1 billion yuan will be allocated for the fixed assets investment in the production base (Phase I) and the R&D center, while approximately 9.05 billion yuan will be invested in R&D before the models are launched. 

Formerly known as JAC Volkswagen Automotive Co., Ltd., Volkswagen Anhui was established in 2017 as a joint venture between Volkswagen Group and JAC Group. In December 2020, Volkswagen Group increased its stake in JAC Volkswagen to 75% through strategic investment and took over the management rights, resulting in the official renaming of the joint venture as Volkswagen (Anhui) Automotive Company Limited.

As Volkswagen Group's first joint venture in China dedicated to new energy vehicles, Volkswagen Anhui focuses primarily on the R&D as well as production of new energy vehicles. It has also established Volkswagen Group's third MEB factory in China, with plans to commence production of its first model in the second half of 2023. 

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