Jac and Volkswagen plan to jointly build a new energy vehicle research and development center, with a total investment of about 4 billion yuan.

July 10th, Jianghuai Automobile, Shanghai stock exchange listed company, cooperates with Volkswagen two subsidiaries on new energy automobile research and development center, and commonly develop pure electric vehicle platform, which is expected to total investment of 500 million euros (4 billion yuan).

Jianghuai auto (party a), Volkswagen (China) investment co., LTD. (party b), SEAT, S.A. (SEAT motors) (party c) on July 9, 2018 in Berlin, Germany signed the memorandum of understanding.

Volkswagen (China) investment co., LTD is a Volkswagen group regional headquarters in China, mainly responsible for investment, scientific research and consulting business. SEAT, S.A. (SEAT car company) is a 100% subsidiary of Volkswagen group, which is established according to Spanish law and viability of the company. Volkswagen group was established in 1938, the subscribed capital of euro 1.283 billion, headquarters is located in wolfsburg, Germany, Europe's largest car company, is the world one of the most powerful multinational companies in the automotive industry.

Volkswagen group's business areas including automotive research and development, production, sales, logistics, services, auto parts, auto financial services, insurance, banking, etc.On December 31, 2017, the company's total assets of 422.193 billion euros, with a net worth 109.077 billion euros, 2017 annual business income is 230.682 billion euros, after-tax net profit of 11.638 billion euros.

To formulate cooperation direction including:

The parties will jointly set up research and development center. The R&D center of long-term goals will focus on electric car, car networking and automated driving technology. Therefore, research and development center will have the independent development of new energy vehicles and related parts and components and the ability of core technology. Parties are R&D center with a total investment of and ultimately the ability range. The parties wish to start planning research and development center in 2018 and completed in 2021.

The relevant technology of the joint venture company will be based on the parties start competitive electric platform research and development. Investment is in the platform, the development cycle, and application of globalization, the ongoing discussion.

Total investment in research and development center and the platform development forecast of around five hundred million euros (four billion yuan).The parties will further discussion and research on the investment plan, according to the approval of the project such as feasibility, and the project shall be separately signed the final agreement.

The parties agree to c is to hold at least a 1% stake in Jianghuai public shareholders. Concrete implementation way is increased by Jianghuai public equity transfer party b or party c. Party aagrees to give up on the 1% stake of preferential buy right. Capital or share transfer is expected in 2019 years.

The parties agreed to the joint venture company will make full use of the new R&D center in the People's Republic of China to introduce western astra brand and production based on and special products research and development of products that meet the Chinese market. And special imported brands are scheduled for 2020/2021.

The parties based on regulatory, compliance, and management reasons willing to work in each project milestone before starting is needed for all relevant agreements, contracts and agreement and in the working process of the implementation document.

Impact on the management of listed companies, the three sides reached the joint investment to establish a new energy vehicle research and development center and common development cooperation intention of pure electric vehicle platform, if can smooth implementation, this joint venture is expected to promote the company's new energy automobile technical level and brand premium ability, is conducive to meet the needs of the consumers, further development of new energy automobile market.

The page contains the contents of the machine translation.