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Business / Auto China

Jianghuai seeks technology linkup with VW

(Agencies) Updated: 2016-03-08 10:54

Jianghuai seeks technology linkup with VW

The production line of Anhui Jianghuai Automobile Co in Hefei, Anhui province. [Photo/China Daily]

Anhui Jianghuai Automobile Co, one of the few remaining major Chinese automakers without a foreign joint-venture partner, said it is in talks to cooperate with Volkswagen AG as it seeks to gain more advanced technology.

The company, which counts the Anhui provincial government as a shareholder, is actively pursuing joint-venture tie-ups with foreign carmakers, Chairman An Jin said on Sunday in Beijing, where he was attending the annual session of the National People's Congress.

"We are communicating with VW in a friendly manner and with mutual respect," An said. "All leading multinational peers are role models we can learn from. If there is an opportunity, we are very open and active in cooperating with them on the capital front."

Jianghuai slumped the most in more than four years in March 2013 after China Central Television reported that the company had sold vehicles with rusted frames. The automaker subsequently recalled more than 100,000 cars, saying the cars didn't meet some technical standards.

An declined to be more specific about the nature of the talks with Volkswagen, which said last month that it will invest more than 4 billion euros ($4.5 billion) in China this year.

Foreign companies that want to produce vehicles in China must set up a joint venture with a local partner that has a manufacturing permit.

Jianghuai has set a target to sell 580,000 to 650,000 vehicles this year, compared with last year's deliveries of 588,052 units.

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