China’s Jianghuai Auto in Venture Talks with VW

The head of Anhui Jianghuai Automobile Co. Ltd. tells Bloomberg News the Chinese carmaker is discussing a joint venture with Volkswagen AG.

Founded in 1964, Hefei-based JAC Motors is a state-owned producer of cars, SUVs, light trucks and commercial vehicles. It’s also one of China’s few major carmakers without a foreign partner.

Chairman An Jin says the company is actively pursuing one or more tie-ups with overseas carmakers in a bid to gain world-class technology know-how. Bloomberg notes that Jianghuai has been struggling to repair its tarnished reputation after being accused in 2013 by state television of selling new cars with rusted frames.

VW launched Shanghai Volkswagen Automotive Co. in 1984 with Shanghai Automotive Industry Corp. Its second venture, FAW-Volkswagen Automotive Co., began building cars in 1991.

Jianghuai has the capacity to build more than 700,000 vehicles per year. It sold 588,100 cars and trucks in 2016, including 59,000 exports. The company hopes to hike its volume this year to as many as 650,000 units.