February 26, 2019 06:13 AM VW forms joint venture with ride-hailing giant Didi

Volkswagen Group established a joint venture with China's largest ride-hailing operator, Didi Chuxing, to develop technologies for ride-hailing fleets.

The 64 million-yuan ($9.6 million) partnership was incorporated in Shanghai's suburban Jiading district in December.

The new company is 60 percent owned by Didi, with the remaining 40 percent held by VW's China investment subsidiary, according to Beijing-based National Enterprise Credit Information Publicity System, which tracks the credit status of China businesses.

Additional details about the new venture were not released.

VW is the only global automaker that has partnered with Didi to gain access to China's market for ride-hailing services.

In January, Beijing Electric Vehicle, a unit of state-owned Chinese automaker BAIC Motor Group, also established a joint venture with Didi to develop customized electric vehicles and connected car systems for Didi's ride-hailing fleet.

VW has long been the largest auto manufacturer in China. In 2018, the German auto giant delivered 4.21 million vehicles under multiple brands.

Didi is headquartered in Beijing. In addition to cities across China, it has also launched ride-hailing services in select cities in Australia, Brazil, Mexico and Japan.

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