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VW Cleared to Raise Stake in China Venture with FAW
Volkswagen AG says Chinese regulators have given it permission to increase its stake in the group's carmaking venture with FAW Group Corp.
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Volkswagen AG says Chinese regulators have given it permission to increase its stake in the group's carmaking venture with FAW Group Corp.
VW currently owns 40% of FAW-Volkswagen Automobile Co. Analysts estimate that raising its holdings to 50% would cost VW €4.5 billion-€5 billion. Hans Dieter Poetsch says VW has no plan to merge with FAW.
VW tells Reuters the partners have created internal working groups to evaluate the investment. They also have hired consultants to help value the added stake in FAW-VW.
The venture makes Audi and Volkswagen brand vehicles at locations in Changchun, Chengdu and Foshan. The venture also plans to open two more assembly plants in Qingdao and Tianjin at a combined cost of €2 billion.
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