Volkswagen Group signed a preliminary deal with China’s Jianghuai Automobile to explore making electric and plug-in hybrid cars in a new joint venture, the German automaker said today in a statement.
The two sides are studying the feasibility of a new joint venture and aiming to sign a formal agreement within five months, JAC said in a stock exchange filing.
China surpassed the U.S. last year to become the largest maker of pure electric cars thanks to a raft of government incentives to promote the switch from gasoline to electricity as the country battles heavy pollution.
Via Roman Meliška.