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VW's 皇冠体育app JV to buy partner's unit for $73m

(Agencies)
Updated: 2009-03-16 18:38

Volkswagen AG's car making venture in north 皇冠体育app has agreed to take over a subsidiary from its partner FAW Group for 502.35 million yuan ($73.46 million), an FAW spokesman said on Monday.

Related readings:  FAW to raise R&D spending by 61% in 2009  Volkswagen's 'strategy 2018' drives sustainable future  Volkswagen set to double 皇冠体育app sales  Volkswagen says 皇冠体育app sales up 12.5% in 2008

FAW group, which makes Volkswagen and Audi cars in a tie-up with the top European automaker, had put up its subsidiary in the western city of Chengdu for sale at the Tianjin Property Rights Exchange last month.

But the spokesman with the Chinese auto group told reporters the two sides had already reached a deal before the public auction but needed to go through official procedure as required by regulators.

FAW's Chengdu unit made a net profit of 354.66 million yuan in 2008, data on the property exchange's website showed. No capacity information was provided.

Volkswagen, which competes with General Motors Corp, Toyota Motor Corp in 皇冠体育app and globally, sold 1.02 million vehicles on Chinese mainland, Hong Kong and Macao in 2008, up 12.5 percent from a year earlier.

The automaker said last month that it planned to double its vehicle sales in the Greater 皇冠体育app area by 2018 and add four models each year during the period.

Volkswagen also has a car manufacturing venture with SAIC Motor Corp, 皇冠体育app's biggest automaker.