VW To Produce Low-Cost EV With JAC For China, Sell It Under A New Brand

Stained by the cheating emissions scandal, Volkswagen is now looking into alternatively powered cars, and electricity seems to be the key.

According to AutoActu, which is citing the brand’s CEO in China, Jochem Heizmann, the automaker has signed a memorandum with Jianghuai Automobile Co. (JAC) in order to develop a new electric vehicle.

Contrary to previous reports, though, it won’t be sold as a Volkswagen, as it will be marketed under a new brand, whose name has yet to be disclosed.

The vehicle will ride on a platform developed by VW’s Chinese partners, and in order to become successful in the People’s Republic, it will need to be cheap, but the automaker has this chapter covered too, as the car is expected to be low cost.

Volkswagen’s decision to develop an EV and sell it in China is directly connected to Beijing’s plans to introduce a carbon trading system, from 2018, which will force car manufacturers that sell more than 50,000 units annually on the local market to produce electric vehicles locally.

The venture with JAC won’t interfere with Volkswagen’s business in the Asian country with FAW and SAIC Motor.

Note: VW Budd-e Concept pictured