Gasgoo.com - There have been several reports circulating in the Chinese media that Sino-German joint venture FAW Volkswagen is agreeing to a stock ratio adjustment plan that will involve it gaining the right to produce several new SUV models if parent FAW Group relinquishes a 9% stake in the company. According to a report appearing on auto.sina.com.cn today, FAW-VW has denied these allegations.
¡°Any stock ratio adjustment plans will be done in accordance to the laws and legislations,¡± FAW-VW Spokesman and PR Director Li Pengcheng stated, adding that the JV¡¯s asset valuation has not been completed and that all parties are currently engaging in negotiations.
Mr. Li¡¯s comments were backed up by VW China¡¯s PR department, whose official statement read ¡°the asset valuation process is currently in progress.¡± In a later interview, the department stressed that such a stock ratio adjustment would involve an ¡°international transfer of stockholding rights¡± and that ¡°the entire process would require a certain amount of time to complete.¡±
Furthermore, at last month¡¯s Shanghai International Automobile Exhibition, VW China CEO Jochem Heizmann stated that any stock ratio adjustment plans would take around a year to decide upon.
Mr. Li added that FAW-VW gaining the rights to produce new SUVs has nothing to do with any stock ratio adjustments. ¡°Updating products and bringing over new vehicles is part of [normal business procedures] and has nothing to do with issues related to stock ratio adjustments,¡± Mr. Li stated.
FAW-VW has been the subject of intense media attention since its stock ratio adjustment plans were released last October.