2017 05 23JAC released the announcement: final approval from NDRC (China National Development and Reform Commission) on joint venture project with Volkswagen producing electric passenger vehicles.

JAC released the announcement at the night of 22 May about receiving the final approval from NDRC: in order to promote the development of new energy vehicle business, deepen the collaboration between Chinese and German BEV industry, the JV project between JAC and VCIC (VW China) on producing electric passenger vehicles is hereby approved.

It is known that the project will set up new self-owned brand and trademark, create new technology co-operation and business model and expand both domestic and international markets.

The announcement shows that the total project investment reaches 5.061 billion RMB among which construction investment is 2.95153 billion, circulating capital 2.10958 billion, project capital 2 billion, accounting for 39.52% of the total investment. JAC and VCIC cash 1 billion each into the capital, and the 3.06111 billion gap between total investment and project capital is raised independently. The joint venture term is 25 years.

The project uses the current construction land of JAC and establishes pressing, welding, painting, assembling and battery package workshops, R&D center, general power, working facility and production processing equipment, etc. to build the annual capacity of one hundred thousand electric passenger vehicles. The project is located in the Economic-Technological Development Zone in Hefei, Anhui.