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JAC – the model of new joint venture mode

The JAC Volkswagen joint venture project is the first cooperation project of new energy vehicle between Chinese and foreign company VW

The JAC Volkswagen joint venture project is the first cooperation project of new energy vehicle between Chinese and foreign company. JV broke the traditional joint venture and cooperation model, and created a new and international new energy vehicle brand with an independent, complete and international first-class new energy R&D system, and meanwhile continuously expands cooperation in new business areas such as mobile travel, vehicle interconnection, and big data. The industry generally believes that the JV cooperation provides an example for the new joint venture cooperation model.

Alliance with VW

JAC is one of the important participators in promoting the deepening cooperation between Chinese vehicle companies and foreign resources. In June 2017, the Hefei Municipal Government, Volkswagen and JAC officially signed an agreement, and the new energy vehicle project was officially started in the same month. It is understood that the total investment of JAC Volkswagen pure electric passenger vehicle project is 5.06 billion RMB, and the partnership term of joint venture is 25 years.

JV is the third joint venture of Volkswagen Group in China, and it is also the first new energy joint venture project approved by the National Development and Reform Commission. In April 2018, JV released the brand of pure electric vehicle SOL and showed the brand’s first model. The model combined the experience of the Volkswagen Group in China for more than 30 years and the technical strength of JAC, while incorporating a distinctive European design that reflects the synergy between the two parties. On September 28 this year, the first model E20X, JAC and Volkswagen’s new joint venture pure electric vehicle brand, officially announced the price. There are two versions which are “Inner Voice Version” and “Extraordinary Quality Version”.

In fact, on the road of opening up and cooperation with the outside, JAC is going deeper and more practical. On November 28, 2018, Volkswagen Group (China), Anhui Jianghuai Automobile Group Corp., Ltd. and SEAT signed a memorandum of understanding in Spain. The partners will jointly develop an electric vehicle platform for the production of JV production based on their respective technical strengths and product reserves. More than ten days later, the JAC Volkswagen New Energy Passenger Vehicle Project R&D Center broke ground in Hefei and became an important cornerstone of JV’s innovation and development in China’s auto industry. On May 27, 2019, JV and its joint venture partner SEAT signed an agreement to confirm the further promotion of the SEAT’s strategy in China and to introduce the SEAT into China in the next two to three years.

As for this, Li Ming, deputy general manager of Anhui Jianghuai Automobile Group Corp., Ltd. and general manager of JAC Volkswagen Automotive Co., Ltd., said in an interview that JAC is representative of opening up and cooperation, and JV is the first new energy cooperation project between China and foreign countries. The establishment of a core company with Cummins is also a good feature, “A lot of things have been learned through joint ventures, and technical management level has been improved.”

It is worth mentioning that the cooperation between JAC and VW also create many new models. On September 5, 2019, the Chengdu Autoshow opened where JAC A5 was officially unveiled. It is reported that A5 will be produced in line with JAC Volkswagen and ensure high quality under the strict quality control of German VDA quality management system. The rear suspension of the A5 uses a unique E-type four-link independent suspension which is rare in the same class. The front suspension uses a MacPherson type independent suspension and the chassis system is carefully adjusted by Magna.

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