German carmakers step on Chinese electric pedal: sharonlamhk CGAThompson
German automaker Volkswagen said on May 29 it will invest around 1 billion euros for a 50% stake in the state-owned parent of Anhui Jianghuai Automobile Group , and also raise its stake in an existing electric vehicle joint venture with JAC to 75% from 50%. The joint venture will launch five more electric models by 2025 and establish a car manufacturing base.
In a separate transaction, Volkswagen will invest 1.1 billion euros for a 26.5% stake in electric-battery maker Gotion High-tech, becoming its biggest shareholder, Reuters reported on May 29. Daimler plans to invest in Farasis Energy’s planned $480 million IPO, to ensure a stable supply of batteries from the Chinese firm as it ramps up electric vehicle production, Reuters reported on May 26, citing sources.
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