JAC drives ahead with VW tie-up

Chinese auto firm to establish new-energy vehicle joint venture with the German automobile giant

German carmaker Volkswagen AG is to set up a 50:50 joint venture on new-energy vehicles with China's Anhui Jianghuai Automobile Co, according to a memorandum of understanding the two signed in Germany on Wednesday.

The two have agreed to enter into discussions to evaluate the perspectives and feasibility of a new joint venture that will focus on research, manufacturing and sales of new-energy vehicles and spare parts, said Volkswagen in an e-mail to China Daily.