AutoBeta(AutoBeta.net)11/24 Report--

Since Jianghuai Volkswagen has made the latest progress in increasing capital and changing the stock ratio, issues related to the capital increase of Jianghuai Volkswagen have been put on record by the Development and Reform Commission of Anhui Province and entered the final implementation stage. It is reported that Jianghuai Automobile will change its name to JAC-Volkswagen. However, in response to this matter, Jianghuai Automobile officials have refuted the rumor that the news is not true.

According to relevant media reports, there are three details about the renaming of Jianghuai Automobile. First, Anhui Jianghuai Automobile Group Co., Ltd. will change its name to "Jianghuai Volkswagen Co., Ltd.". Secondly, "Jianghuai Volkswagen Co., Ltd." will be renamed to "Volkswagen (Anhui) holding Co., Ltd.". Finally, the name of the listed company "600418 Jianghuai Automobile" will be changed to "600418 Jianghuai Automobile Volkswagen".

However, in response to the news, some media have verified with Jianghuai Automobile, and its insiders replied, "there is no such news from within us, which is not true." At the same time, the management of Jianghuai Media and Information Department said that the news was not true and had not heard the relevant news.

In May this year, Anhui SASAC, Volkswagen China Investment and Jiangqi Holdings jointly signed a letter of intent on increasing capital to Anhui Jianghuai Automobile Group Holdings Co., Ltd. Volkswagen China will acquire a 50% stake in Jianghuai Holdings by way of capital increase. At the same time as taking a stake in Jianghuai Automobile Group, Volkswagen also announced that it would increase its stake in JAC Volkswagen to 75%, giving Volkswagen a controlling stake in the joint venture. Therefore, Jianghuai Automobile will also become a joint venture company, and it is only natural to change the name of the company.

In addition, on June 11, the three parties formally signed the Investment Agreement on Anhui Jianghuai Automobile Group Holdings Co., Ltd., which stipulated that Volkswagen China contributed 2.383 billion yuan to acquire a 50% stake in Jianghuai Automobile Holdings.

According to the plan, JAC Volkswagen's total registered capital will be increased to 7.356 billion yuan. The original shareholding structure of JAC Volkswagen at 50:50 will be changed to Volkswagen China Investment to increase its equity by 75% with a registered capital of 5.517 billion yuan, while JAC shares will be reduced to 25% with a registered capital of 1.839 billion yuan. At the same time, the management of the company will be dominated by Volkswagen China Investment, that is, Volkswagen.

As the beginning of the cooperation between Volkswagen and Jianghuai Automobile, since June 2020, after the strategic joint venture and cooperation between Volkswagen Group and JAC Automobile Group was fully launched, Volkswagen bought a 50% stake in JAC Automobile Group. It has also closely followed the layout of Volkswagen's global electrification industry, in addition to the overall acceleration of Sihao new energy product development, channel construction, and brand promotion. After Volkswagen becomes a 75% shareholder in the joint venture under the agreement, it will also award 4-5 Volkswagen brand products to the joint venture, which will be based on its pure electric platform.

Volkswagen believes that after Jianghuai Volkswagen introduces Volkswagen products, it will complement and coordinate with FAW-Volkswagen and SAIC-Volkswagen, the other two Volkswagen joint ventures in China. At present, FAW-Volkswagen and SAIC-Volkswagen are also gradually expanding their layout in the new energy electric market.

It is worth mentioning that Jianghuai Motors also issued a notice a few days ago that the company had received notification of Volkswagen's China investment. according to the Investment Agreement on Anhui Jianghuai Automobile Group holding Co., Ltd. signed by Volkswagen China Investment with Anhui State-owned assets Supervision and Administration Commission and JAC on June 11, 2020, and the Investment Agreement on Jianghuai Volkswagen Co., Ltd. signed with Jianghuai and Jianghuai Volkswagen on June 11, 2020. Volkswagen China Investment has submitted an anti-monopoly review declaration to the anti-monopoly review authorities of the relevant countries with pre-declaration obligations on the transactions under the two investment agreements. As of November 23, 2020, Volkswagen China Investment has obtained the approval of the antitrust review department for the project in the relevant countries.

Jianghuai Automobile, as one of the major automobile enterprises in the history of China's automobile industry, can quickly adjust the development direction in the opportunity period of the transformation of the times, which must have more advantages than disadvantages. If Jianghuai Automobile is renamed accurately, it will also help Jianghuai Automobile to achieve upward development with the help of Volkswagen.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat