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Volkswagen and JAC Motors will increase the percentage capital of the joint venture from $1. 03 billion to $1. 94 billion. Approximately $220 million will come from JAC, while the remaining $680 million will be invested through Volkswagen, so their respective 25% and 75% stakes will not be converted. in the JV.
News of the new surge in investment follows human rights allegations raised by Human Rights Watch (HRW) against automakers in China, including Tesla, Volkswagen, BYD, Toyota, and General Motors.
In a report published through HRW in February, the NGO accused the auto giants of failing to prevent the exploitation of Uyghur staff at aluminum production plants in Xinjiang, northwest China.
Volkswagen will regain lost market share in China as tensions rise between the West and Beijing and with pressure mounting to abandon the production site in Urumqi, the capital of the Xinjiang region.
In 2017, VW signed a deal with JAC Motors in which the two corporations got a 50:50 share in the production of primarily electric vehicle models. In December 2020, Volkswagen China acquired another 25% of the joint venture, bringing the total stake to 75%.
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The joint venture with JAC Motors is in Hefei, capital of Anhui Province. The Volkswagen Group China has 33 factories spread across various locations in the country.
Baltimore has long served as a major access point for European automakers to the U. S. market, with more than 847,000 cars and trucks treated through the port last year alone.
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