In recent years, China has become some of the biggest markets out there for the automotive sector. With the way things are going, it appears that more automakers are keen on investing there, chief among which is Volkswagen.
Volkswagen has been a staple in China since 1985, consistently being the top selling brand in the People's Republic. But the German automaker is keen on expanding their foothold and presence in China. After all, they sold well over three million cars there for the past couple of years.
In a bid for an even stronger hold in China, Volkswagen is reportedly planning to buy a big chunk of JAC Motors. Not only that, the report also mentioned Goldman Sachs as the adviser on the plan. If confirmed by Volkswagen AG, not only will it help them gain even more sales, their electrification program in China is also said to get a healthy boost. Also, Volkswagen is planning to shift their electric vehicle production to JAC, if VW will, indeed, buy a large stake in the said brand.
It is said that the plan is still in its early stages, and Volkswagen themselves did not say outright that they are buying JAC Motors, at least for now. However, they did mention that they will 'explore all options' to 'secure long-term success in China'. JAC Motors has yet to comment on the matter, and neither has Goldman Sachs.
Last year, the Volkswagen Auto Group shifted 4.21 million cars in China, as well as Hong Kong. They currently have a partnership with SAIC Motor, as well as the FAW Group.