VW to strengthen Chinese presence

Volkswagen AG has signed a memorandum of cooperation with a Chinese company to set up a jointly-owned company to produce electric cars.

The Wall Street Journal has reported that VW is working with China Anhui Jianghuai Automobile Co, a Chinese state-run manufacturer of trucks, conventional and electric cars.

A formal agreement expected within five months, with the two companies each owning 50% of the joint venture.

VW sold 3.55 million cars in China last year, accounting for more than a third of its global sales.

It already has two car-making partners in the country: SAIC Motor Co. in Shanghai and FAW Group Co. in the northeast.