Volkswagen is reportedly in joint-venture talks with Didi Chuxing
According to a recent Reuters report, German automaker Volkswagen AG (VW) is in talks with China-based Didi Chuxing for a possible joint venture. The main focus of the joint venture which VW is discussing with Didi Chuxing will be on the provision, development, and management of ‘purpose built’ vehicles.
It is being projected that the reportedly ongoing joint-venture talks between VW and Didi Chuxing -- the leading on-demand taxi service in China -- will apparently result in the signing of an agreement in early May. The financial terms of the possible deal are not known as yet.
It is also expected that, going by the projected initial terms of the joint-venture deal, VW will be responsible for the management of a fleet of approximately 100,000 new vehicles for Didi Chuxing on-demand taxi service.
As per the report, nearly two-third of the vehicles of the fleet will be Volkswagen Group cars; with the rest of the fleet to comprise vehicles which will be jointly purchased by VW and Didi Chuxing. Eventually, the joint venture will probably lead to the production and use of self-driving cars.
An unidentified source aware of the proceedings at Volkswagen has told Reuters that “this deal will eventually give Volkswagen access to some of Didi’s massive trove of data on customer behavior collected through the 3 million rides Didi provides in China each day.”
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South America is still lagging behind in adoption of electric vehicles. Chinese companies are already approaching public transport authorities across the world to offer their electric and hybrid urban mobility solutions.
According to a Bloomberg New Energy Finance (BNEF) prediction, 19% of all passenger vehicles sold in China will be electric vehicles (EVs) by the year 2025.
With the 2019 Chevy Volt PHEV scheduled for availability this fall, General Motors (GM) has recently announced an upgrade to the vehicle, in order to bring some new features on board.
On Wednesday, German automaker Audi announced at its annual meeting that it plans to build 20 new electrified cars by the year 2025. The automaker also added that most of the planned electrified cars will be battery-powered vehicles.
Earlier this week, Canada-based car manufacturer Magna International announced that it is forming a joint venture with BAIC subsidiary Beijing Electric Vehicle Company for producing two new premium electric cars in China.