Volkswagen’s brand new CEO Herbert Diess on VW’s China future

The brand new CEO of Volkswagen said Tuesday in which the company has no plans yet to go the idea alone in China, yet he sees investment opportunities afoot as Asia’s largest economy prepares to open up its market to automakers.

“the auto industry is actually not only 50-50 joint ventures,” Herbert Diess told CNBC’s Nancy Hungerford at Auto China 2018 in Beijing, adding in which the planet’s largest automaker was open to brand new partnerships.

“We need to partner with the local tech enterprises. There is actually a lot to do, yet there might be one or some other investment opportunities. Investment is actually always an option,” said Diess.

China announced last week in which the idea would likely open up the market to foreign automakers, which have been encumbered by ownership limitations within the country for more than two decades.

The restrictions, which prevented foreign car makers by owning more than a 50 percent share of any local venture, will be lifted incrementally over the next four years. Manufacturers of fully electric as well as plug-in hybrid vehicles will be the first to benefit, starting in which year, followed by makers of commercial vehicles in 2020 as well as the wider car market by 2022.

The move is actually part of China’s efforts to make its domestic autos industry more flexible as well as establish itself as a leader in electric cars.

Diess dubbed the policy shift as a “positive move forward” in which would likely generate further growth as well as investment in China.

His comments came within the first sit-down interview since he was appointed as head of the German automaker on April 12, 2018. He will assume the role by August 2018.

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