Volkswagen Invests $2.3 Billion in China EVs, Takes Stake in NIO's Manufacturing Partner
Volkswagen (OTC: VWAGY) will invest 2.1 billion euros ($2.34 billion) in two electric-vehicle-related companies in China as it prepares to capture a substantial share of growing electric-vehicle sales in the world's largest new-vehicle market, the company announced Friday.
VW said that it will invest 1 billion euros in the government-owned parent company of Anhui Jianghuai Automobile Group (often referred to as JAC Motors), in exchange for a 50% stake. VW will also take control of an ongoing joint venture with JAC under the deal, boosting its ownership of the electric-vehicle venture (called JAC Volkswagen) from 50% to 75%.
In a second transaction, VW will pay 1.1 billion euros in exchange for 26.5% of electric-vehicle battery maker Gotion High-Tech Co., Ltd., becoming its largest shareholder.
Source Fool.com
