Volkswagen to forge partnership with China's BYD for electric cars

Volkswagen, currently the third largest automobile maker in the world and the largest in Europe, is expected to partner with Chinese electric car and battery maker BYD for making hybrids and electric cars run by lithium-ion batteries.

Volkswagen chairman Dr Martin Winterkorn and BYD CEO Wang Chuan-Fu, are reported to have signed a memorandum of understanding last week that was announced yesterday, about exploring the possibility of co-operation between the two companies on electric cars using lithium-ion battery technology.

In a brief statement released today, Volkswagen said that it has signed a memorandum of understanding with BYD to explore the possibility of collaborating in the field of electric vehicles and batteries.

With China being Volkswagen's second-largest market after Germany, Ulrich Hackenberg, head of research and development at Volkswagen, said that companies like BYD could support the German carmaker's expansion into the Chinese market.

A statement from Volkswagen quoting Dr Winterkorn, said, "Particularly for the Chinese market, potential partners such as BYD could support us in quickly expanding our activities."

If the partnership goes through, then Lower Saxony, Germany-based Volkswagen will be the first major car manufacturer to forge a partnership with the world's second-largest producer of lithium-ion batteries.