VW Gains Right to Take Control of China Joint Ventures

Volkswagen AG, like BMW AG, has been given the right to acquire a controlling stake in its Chinese joint ventures ahead of all other foreign carmakers, Automotive News China notes.

Manager Magazin reported the BMW deal earlier this week. BMW and partner Brilliance Automotive Group expect to raise annual capacity next year to 520,000 BMW brand vehicles from the current 450,000. BMW’s ownership in the venture is now 50%, up from the previous 40.5%, and could rise to as much as 75%.

VW was granted a similar deal involving its two Chinese partners during a flurry of agreements signed in Germany last week by Chinese Premier Li Keqiang.

ANC says VW will expand capacity and set up an EV development center with existing partner Jianghuai Automobile Group. VW also will help develop an EV charging network and develop digital services for connected vehicles with partner China FAW Group.