November 28th, in the presence of Chinese President Xi Jingping and Spanish Prime Minister Pedro Sánchez, a Memorandum of Understanding (MOU) was signed in Spain by Volkswagen Group China, Anhui Jianghuai Automobile Group Co., Ltd. (JAC) and SEAT. Under the MOU, IIA learnt that the technology and product capabilities of all parties will be leveraged to develop a battery electric platform for productions at JAC Volkswagen. And JAC Volkswagen will introduce the SEAT brand by 2021. What’s more, construction of the JAC Volkswagen R&D center will start before the end of 2018 and will complete in 2021 as planned. And it will focus on key areas such as connectivity, autonomous driving and other future strategic directions.

SEAT, Volkswagen Group China and JAC have signed an agreement last July in Berlin. Under the MOU, the three groups were to jointly establish a new R&D center with a focus on developing electric vehicles in order to meet the demands of Chinese consumers. SEAT would become a shareholder in JAC Volkswagen, through either a capital increase of JAC Volkswagen or a share transfer from Volkswagen Group China. This would result in the introduction of the SEAT brand in the China market, targeting 2020/21.

“E-mobility along with digitalisation, connectivity and autonomous driving are the future of the mobility industry, and China has established itself as a major driver of this transformation,” said Dr. Herbert Diess, Chairman of the Board of Management of Volkswagen AG. “This partnership also represents the benefits of a globalized approach to delivering sustainable mobility.”

The Volkswagen Group entered China in 1978 and is one of the most successful foreign car companies. In the course of many years of development, Volkswagen has been seeking ally in the Chinese market. At present, it has established three joint venture manufacturing companies: FAW-Volkswagen, SAIC Volkswagen and JAC Volkswagen. In 2017, the cumulative sales of Volkswagen in China exceeded 3.177 million units, an increase of 5.9% year-on-year, once again recording the highest sales.

This cooperation is in line with the Volkswagen's "Roadmap E" electric vehicle strategy. In the future, Volkswagen Group China, JAC Volkswagen, FAW-Volkswagen and SAIC Volkswagen will jointly lead the development of electric mobility.

According to the plan, in the next two years, Volkswagen Group will add 30 new energy models, of which 50% will be localized. By 2020, Volkswagen plans to deliver approximately 400,000 new energy vehicles to the Chinese market and approximately 1.5 million units by 2025.