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World’s leading vehicle manufacturer Volkswagen AG plans to acquire a 20% stake in Chinese electric vehicle battery maker Guoxuan High-tech Co. The deal will accelerate Volkswagen’s electric vehicle push into the world’s largest auto market.

After completion of the deal, Volkswagen will become the battery maker’s second-largest shareholder with a 20% stake, just behind the Zhuhai Guoxuan Trading Ltd, which currently holds 25% in the firm. The acquisition would mark Volkswagen’s first direct ownership in a Chinese battery company.

The prominent investments and expansions news of Volkswagen are mentioned below:

  • January 2020: The Volkswagen Group has agreed to acquire remaining shares in diconium, a digital solutions provider. The acquisition of diconium will strengthen the Volkswagen’s capabilities in the field of digital sales solutions. After the completion of the deal, the company will develop a global online sales platform that will allow customers of all Group brands to purchase and manage digital services.
  • December 2019: Volkswagen Group China, along with its Chinese partners plans to invest US$4.4 billion to enhance e-mobility in 2020. The investment will accelerate the Group’s electrification strategy in Chinese and neighboring markets. The production of vehicles based on the modular electric drive toolkit MEB in Anting (SAIC VOLKSWAGEN) and Foshan (FAW-Volkswagen) will begin in 2020. Both Volkswagen factories are designed for manufacturing all-electric cars.
  • November 2019: Volkswagen Group had announced plans to invest US$66 billion in electrification by 2024. The German automaker wants to switch into electric, hybrid, and future connected vehicles around the world. The company is planning to introduce 75 all-electric models and around 60 hybrid vehicles over the next decade. The automaker has a fixed target to sell approximately 26 million all-electric vehicles by 2029, as well as approximately six million hybrid vehicles to the customers. The company is also planning to hit new European carbon dioxide (CO2) emissions targets by the same year.
  • October 2019: Volkswagen has launched a pilot project in Rwanda, to test the possibility of electric mobility in partnership with Siemens. Volkswagen has signed a joint development deal with Siemens to provide the charging infrastructure for the electric vehicles. In the pilot phase, four e-Golfs and one charging station will be established in the capital of Rwanda, Kigali.
  • September 2019: Volkswagen Group plans to build a battery cell factory in Salzgitter, Germany, in a joint venture with Northvolt. The new facility will have features for development, testing and production of cutting-edge battery cell technology. The company will provide over 1000 jobs once the facility will completed.
  • May 2019: The Volkswagen Group has announced an investment in Northvolt AB, a Swedish battery cell producer. The group will invest approximately $1 billion in joint battery activities with Northvolt. As per agreement Volkswagen will acquire 20% stakes in Swedish Northvolt AB. After the transaction, a 50/50 joint venture will build a 16 GWh battery cell factory in Europe.

About The Volkswagen Group
The Volkswagen Group, headquartered at Wolfsburg, Germany, is one of the world’s leading automobile manufacturers and the largest carmaker in Europe. The Volkswagen Group comprises of twelve global brands from seven European countries: Volkswagen Passenger Cars, Audi, SEAT, Lamborghini, ŠKODA, Bentley, Bugatti, Porsche, Ducati, Volkswagen Commercial Vehicles, Scania and MAN. Each brand has its character and operates as an independent entity on the market. The group offers broad ranges of products, from motorcycles to small cars and luxury vehicles. The Volkswagen Group operates approximately 122 production plants in 20 European countries and 11 countries in the Americas, Asia, and Africa. Around 664,496 employees worldwide produce vehicles and work in auto-related services or other fields of business. The Volkswagen Group sells its vehicles in 153 countries worldwide.

Volkswagen has always made an affordable mobility solution for millions of people. The company is transforming the mobility system with new electric drive, digital networking, and autonomous driving technology. Towards sustainable driving environment, the R&D team of company emphasizes on automobile clean, quiet, intelligent, and safe driving experience for future generations.

The Commercial Vehicles Business Area of Volkswagen Group primarily includes the activities of the Automotive Division comprise the development of vehicles and engines, the production and sale of passenger cars, light commercial vehicles, buses, heavy trucks and motorcycles, as well as genuine parts. The partnership between the MAN and Scania vehicle brands is coordinated within the TRATON GROUP. The Power Engineering Business Area of the company includes the large bore diesel engines, turbomachinery, special gear units, propulsion components, and testing systems businesses. The group produces approximately 44,000 vehicles each working day. The Volkswagen Group comprises of two divisions: the Automotive Division and the Financial Services Division. The Automotive Division of the group includes the Passenger Cars, Commercial Vehicles, and Power Engineering business areas.

Besides auto mobility business, the Volkswagen Group also offers a wide range of financial services, including leasing, dealer and customer financing, banking and insurance activities, and fleet management.

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