VW Ponders Commercial Vehicle Venture in China

Volkswagen AG says it may add commercial vehicles to an electric-car joint venture it launched in May with China’s Anhui Jianghuai Automobile Co. (JAC Motors).

The original venture aims to produce as many as 100,000 electric cars per year, with production beginning in 2018. VW says the 50:50 expansion would be based in Hefei and dedicated to developing conventional, plug-in hybrid and all-electric “multifunction” vehicles.

VW’s Commercial Vehicles unit already ships vans to China. Reuters notes that establishing local production would avoid import tariffs on such models as the popular Caddy MPV, which also is offered as a commercial panel van.