Preliminary understanding has been built between China Jianghuai Auto Corporation (short for JAC) and Volkswagen group, said VW’s CEO in early December. And global executives of VW has also paid visit to JAC before.

 

Based on what happened to Daimler and BYD, insiders believe that the cooperation between VW and JAC will also focus on technology and developing alternative energy vehicles.

 

The cooperation with VW can help to increase JAC’s brand competitiveness, technology and benefit according to an insider of JAC.

 

On one hand, China’s government plays a leading role in facilitating the interaction between these two automakers. On the other, cooperation on developing alternative energy vehicles will be an important factor deciding whether two sides can reach a consensus.

 

An insider of VW released that it was Chinese government that communicated with VW about JAC’s intension to build cooperation.

 

Development of alternative energy vehicles is a key part of Chinese government’s layout of the auto industry and therefore turns out to be the focus of both sides when they are planning to build cooperation.

 

Though, there isn’t more news about cooperation between two automakers.