12.8 C
Amsterdam
Tuesday, June 22, 2021

Volkswagen to invest 15 billion euros in China

The German automotive group wants to expand into electrics in the world’s largest automotive market (China)

German auto giant Volkswagen on Monday announced an additional investment of 15 billion euros with its joint ventures by 2024 to expand into electrics in China, the world’s largest automotive market.

There are plans to produce locally 15 new fully electric vehicles by 2025, which will represent 35% of the product portfolio in the country, according to a statement.

The Wolfsburg group, of which China represents 40% of sales, will invest alongside its joint ventures SAIC, FAW-Volkswagen, and JAC Volkswagen, in which the German has already invested one billion euros in May to take the majority.

This investment is in addition to the 33 billion euros already committed by the German in the electric car in the world over the same period.

Production of future electric models will start in October at two new factories using modular platforms, capable of producing multiple models, with a combined capacity of up to 600,000 units per year.

Carbon neutrality in China

The announcement comes days after China, the world’s biggest polluter, ahead of the United States, through the voice of its President Xi Jinping, surprised by committing to carbon neutrality by 2060.

“Volkswagen is committed to being an active partner” towards this goal, VW China boss Stephan Wöllenstein said in the statement.

In May, VW invested 1.1 billion euros to acquire a stake in a local battery manufacturer, Gotion High-Tech.

China’s auto industry is showing signs of recovery lately after the collapse of individual car sales by nearly 80% in February when consumers were forced to stay at home and the economy nearly came to a halt to curb the epidemic linked to the new coronavirus.

Electric cars are one of the main attractions at the Beijing Motor Show which opened on Saturday, with China aiming to increase the share of electrics to 25% by 2025.

Latest news

UN calls out G7 leaders for failing to secure £72bn per year deal on climate

The head manager of climate change at UN has forewarned how world leaders remains ''far away'' from coming up with a deal that limits...

MPs unsure as to why the Netherlands eased restrictions faster than other countries

The North Sea has the Netherlands as the only country who still has the color red, however the ease of restrictions has already happened,...

Eindhoven to become the Netherlands’ second tech center

Although Eindhoven has yet to become a high-tech hub, it still has a probability of becoming a center for deep tech within Europe. Several locally...

Covid-19 ease of restrictions leads to more burglaries in the Netherlands

After the Netherlands' government decided to ease the Covid-19 restrictions in the beginning of this month, this has lead to a huge increase in...
Related news

UN calls out G7 leaders for failing to secure £72bn per year deal on climate

The head manager of climate change at UN has forewarned how world leaders remains ''far away'' from coming up with a deal that limits...

MPs unsure as to why the Netherlands eased restrictions faster than other countries

The North Sea has the Netherlands as the only country who still has the color red, however the ease of restrictions has already happened,...

Eindhoven to become the Netherlands’ second tech center

Although Eindhoven has yet to become a high-tech hub, it still has a probability of becoming a center for deep tech within Europe. Several locally...

Covid-19 ease of restrictions leads to more burglaries in the Netherlands

After the Netherlands' government decided to ease the Covid-19 restrictions in the beginning of this month, this has lead to a huge increase in...