German carmaker Audi and its Chinese state-owned partner-FAW have received government approval to start the construction of their 20.93 billion-yuan ($3.3 billion) joint electric vehicle (EV) venture plant from local authorities in Northeast China’s Jilin Province.
According to a government notice issued by the planning regulator in Jilin, the plant will be located in Changchun, the capital city of Jilin province, with the construction expected to begin in April, 2022 and scheduled for completion in December, 2024.
The plant will have a production capacity of 150,000 units per year with the venture aiming to produce three models of EV including Audi’s e-tron SUV, said the notice, showing the approval issued on February 11.
According to Chinese business information platform Tianyancha, Audi holds a 55 percent share in the company, FAW holding 40 percent, and Volkswagen Group China’s investment firm holding 5 percent., showing that Audi holds a controlling stake in the joint venture.
Audi and FAW have signed a memorandum of understanding to establish a joint venture that will make electric vehicles based on the Premium Platform Electric (PPE) platform in October 2020, as Audi said that the company would bring China into the PPE, which was developed jointly with Porsche, to advance the transformation in its largest market.
Earlier this week, another German carmaker BMW AG said in a statement that the company has received a business license from Chinese regulators to raise its stake in its Chinese joint venture with Brilliance China Automotive Holdings to 75 percent from 50 percent.
A worker checks Audi cars at FAW-Volkswagen vehicles’ parking lot in Changchun, northeast China’s Jilin Province, July 9, 2019. (Xinhua/Xu Chang)
