Volkswagen to purchase 20% stake in Chinese e-vehicle battery maker Guoxuan



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Volkswagen to purchase 20% stake in Chinese e-vehicle battery maker Guoxuan

Wolfsburg-based German automaking group, Volkswagen AG has been exploring an option to purchase a 20 per cent stake in a Chinese manufacturer of e-vehicle batteries, Guoxuan High-tech Co. Ltd., at least two sources close to Guoxuan had unveiled on Friday, the 17th of January 2020 on condition of anonymity as the sources were not authorized to speak publicly over the issue.

Aside from that, Volkswagen’s latest approach to purchase stakes in the Chinese e-vehicle battery developer, Guoxuan, as a strident push in to the world’s largest automotive market, came forth days after the German carmaker had botched to impress its shareholders about its annual passenger vehicle sales in China last year.

More importantly, the latest deal of VW, which had been the largest automaker in both 2018 and 2019 in terms of passenger car sales despite a growing interest among the youth over SUVs (Sports Utility Vehicles), would remark the German multinational automotive industry tycoon’s first direct ownership in a Chinese e-vehicle battery developer, while the carmaker’s latest move seemed to be aiming at meeting its goal of selling as many as 1.5 million units of electric and plug-in hybrid vehicles in China over the course of next five years, suggested analysts.