VW May Boost Stake in FAW Venture

Volkswagen AG signals it may seek to increase its 40% stake in its joint venture with China's FAW Group Corp. to 50%.

Chief Financial Office Hans Dieter Poetsch tells analysts that current talks to extend FAW-Volkswagen Automotive Co. "could include" negotiations about equalizing ownership.

VW's separate carmaking venture with SAIC Motor Corp., Shanghai VW, already operates under 50:50 ownership.

VW's operating profits don't include results from its joint ventures in China, whose combined sales surged 22% to 1.85 million units in the first half of 2014 . But the German company noted earlier this week that the two partnerships generated an operating profit of €2.6 billion in January-June this year.

Automotive News China notes an analyst's estimate that it would cost VW about €4.5 billion to raise its stake in FAW-VW to 50%.