Volkswagen Exploring JVs in China

In the continuing movement of Volkswagen to embrace technology to advance autos — from electric vehicles to digital functionality — the automaker is in talks with Chinese companies, exploring joint venture opportunities, the Wall Street Journal reported Thursday.

Volkswagen is in talks with Didi Chuxing Technology to explore a ride-hailing joint venture. As the WSJ noted, the Chinese firm ferries 20 million rides daily across the country.

For Volkswagen, said the WSJ, the move toward this service and others is one that would help diversify away from traditional automotive business lines and also distance the firm from lingering fallout of the emissions cheating scandal that erupted in the United States.

In a separate exploration in China, which is the company’s largest market, Volkswagen said it will explore a strategic partnership with Shouqi Group, a car leasing company that is based in Beijing. The overarching theme in exploring these joint ventures, said Volkswagen, is one of mobility. As for alternative energy vehicles, the goal is to have 1.5 million of them (and they would be, in large part, electric vehicles) in the country by 2025.