Volkswagen is said to be in the midst of upping its share in its primary Chinese-market partner, FAW, from 40 to 49 percent.
The move would give VW and FAW a near-parity share in their joint venture, which is the largest in the Chinese automotive industry, by giving VW a 49 percent share and reducing FAW’s stake to 51 percent. Per Chinese business law, foreign automakers can hold no larger than a 50 percent share in car-building joint ventures. No foreign automaker can operate independently in China.
The report comes from China Business Daily, but official word has not emerged from either VW or FAW.
VW has long been a major player in China, where it builds a variety of VW and Audi models in the world’s largest new car market.
References
1.’ Volkswagen raises its…’ view
