FAW, Audi win approval for $3.3B EV enterprise

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SHANGHAI — Volkswagen Group’s Audi premium model and its Chinese language state-owned companion FAW Group have acquired approval from Chinese language authorities to start out development on their $3.3 billion electric vehicle three way partnership plant, in accordance with a authorities discover.

The planning regulator of China’s northeastern province of Jilin mentioned work on the manufacturing unit, which might be primarily based within the provincial capital of Changchun metropolis, is deliberate to start out in April and that the businesses will make investments a complete of 20.93 billion yuan ($3.29 billion) within the plant.

The plant will begin manufacturing in December 2024 and have the capability to fabricate 150,000 vehicles a yr, in accordance with the regulator. Its assertion additionally confirmed the approval was given on Feb. 11, and that the enterprise plans to provide three electrical fashions, together with Audi’s e-tron SUV.

“The Audi FAW NEV venture is a vital cornerstone of Audi’s electrification technique in China,” a VW Group spokesperson mentioned, confirming the approval.

“We’re consequently pushing ahead the related works on this venture. The development of the plant is deliberate to start out within the second quarter of 2022.”

FAW didn’t instantly reply to requests for touch upon Tuesday.

Audi signed a memorandum of understanding with China’s state-owned FAW Group in October 2020 to jointly produce premium EVs in China, the world’s largest automotive market.

In November, Audi mentioned the plant was behind schedule due to a delay in approval by the related authorities.

Audi has a longstanding partnership with FAW to make combustion engine vehicles in Changchun and the southern metropolis of Foshan.

Audi additionally plans to make autos with Shanghai-based automaker SAIC Motor, with a aim for electrified autos to account for a 3rd of Chinese language gross sales by 2025.

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