(Yicai Global) May 29 -- Volkswagen Anhui Automobile, a joint venture between Germany’s Volkswagen and China’s Anhui Jianghuai Automobile, plans to invest an additional CNY23.1 billion (USD3.3 billion) in Hefei, the capital of Anhui province.

Volkswagen Anhui will spend CNY14.1 billion on a research and development center and nearly CNY9.1 billion on the first phase of a production base in Hefei, Chief Financial Officer Jörg Mull said during the kick-off meeting for a series of events titled Invest in Anhui: a Land of Promise, the city government said on its official WeChat account yesterday.

Last month, at the 20th Shanghai International Automobile Industry Exhibition, Volkswagen announced that it would invest about EUR1 billion (USD1.1 billion) to set up a new wholly-owned unit in Hefei.

The new company, expected to begin operations next year, will focus on the R&D, innovation, and procurement of intelligent connected vehicles. In the future, it will also cover the development of cars, parts, and components.

Last September, VW said Volkswagen Anhui will launch a pure electric platform called the SSP, which will be the base for the production of the Audi Grandsphere, Volkswagen Trinity, and Porsche’s new model, whose market positioning is higher than the Porsche Cayenne.

Founded in 2017, Volkswagen Anhui was VW’s first China joint venture focused on new energy vehicles. The German automaker has a 75 percent stake.

Editor: Futura Costaglione