Volkswagen, JAC Motors teaming up

German automaker Volkswagen AG is joining hands with Anhui Jianghuai Automobile Co Ltd (JAC Motors) to develop and sell commercial vehicles in China in an effort to grab a slice of the segment that is growing rapidly in the world's largest car market.

The two companies will build a 50:50 joint venture in Hefei, Anhui province, where JAC Motors is headquartered, according to a memorandum of understanding signed on Monday.

Volkswagen said the partnership will involve a full range of cooperation covering research, development and sales of multifunctional vehicles - both powered by internal combustion engines and new energy ones.