Volkswagen, partners to invest 15 bln euros in developing electric vehicles

Rodiano Bonacci
Aprile 26, 2018

Auto giant Volkswagen announced onr April 24 investments of 15 billion euros ($18 billion) in electric and autonomous vehicles in China by 2022, in a massive bet on the vital market.

Diess, speaking ahead of the Beijing autoshow, said that the German vehicle maker also had no plans to alter its current joint venture partnerships in China, the world's largest auto market, after the country said it would loosen ownership rules. "The strong bond with our joint ventures and business partners will remain", said Herbert Diess, the new chief executive officer (CEO) of Volkswagen. The world's largest automaker outlined a 34 billion-euro investment plan in November 2017 to develop new technology by 2022.

The challenges include developing models that attract buyers, as well as dealing with consumers' changing attitudes toward owning cars.

China's government signaled last week that it will eventually allow foreign auto makers to take full ownership of their local ventures, marking the end of a decades-long set-up.

The move will benefit electric-vehicle companies such as Tesla Inc. with the restriction on such businesses lifting as soon as this year. The limit generally for passenger-car producers will end in 2022.

Volkswagen is "well set up" with its Chinese partnerships and doesn't plan any change in the ventures' ownership, Diess said.

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