VW and JACChina – Volkswagen Aktiengesellschaft (VW AG), VW Group China and Anhui Jianghuai Automobile Co. (JAC) have signed a memorandum of understanding to investigate potential joint venture models, focusing on multif-functional vehicles (MFVs). The new cooperation follows an agreement in June to establish a JV to make battery-electric cars.

Jochem Heizmann, board member of VW AG as well as president and CEO of VW Group China, said the companies have “complementary strengths in the multi-functional vehicle field”. He added: “JAC is an established brand in the Chinese market with a strong track record of producing multi-functional vehicles that are popular with consumers. Volkswagen has a long heritage in producing versatile vehicles with advanced technology.”

The JV will encompass MFV design, technology and product quality, involving both conventionally powered and new-energy vehicles. The business will be established in Hefei, Anhui Province, where JAC is based. VW Group and JAC will take a 50% share each.