During Premier Li Keqiang’s visit to Germany, Volkswagen signed an agreement with JAC Motors to develop, produce and market electric vehicles and mobility services in China. State-owned JAC Motors is based in Anhui province. Volkswagen aims to deliver 400,000 new energy vehicles (NEV) to China in 2020, a quarter of the Chinese authorities’ latest sales goal for the year. Jochem Heizmann, President and CEO of Volkswagen Group China, told reporters earlier this year that about a quarter of its 2020 sales are expected to come from the new joint venture, JAC Volkswagen. The 50:50 partnership will have a total investment of CNY6 billion, and a capacity to manufacture 360,000 cars a year. The JV will make Volkswagen the first foreign automaker to have three partners in China. Its first model, which will be produced at existing JAC facilities, is expected to roll off the assembly line in 2018. That would give Volkswagen a head start in the country, as the first localized electric car from its major rival GM will not hit the market until at least 2019 and Ford’s first after 2020. Matthias Mueller, CEO of Volkswagen Group, called the new joint venture a milestone in its electric offensive in China. JAC Motors sold about 640,000 passenger cars, commercial vehicles and chassis last year, including 18,000 new energy vehicles, the China Daily reports.