Volkswagen and SAIC have signed a new agreement which will pave the way for a number of new plug-in hybrid and electric vehicles to be built in China.

Volkswagen and SAIC have signed a new agreement which will pave the way for a number of new plug-in hybrid and electric vehicles to be built in China.

Under the terms of the deal, the two companies will expand their Shanghai Volkswagen joint venture plant in Anting, China to "meet the new challenges associated with the local production of electric vehicle models."

The companies declined to go into specifics but Volkswagen Board Member Prof. Dr. Jochem Heizmann said "Over the next four years, we plan to localize more than 15 different electric vehicle models in China, including plug-in hybrids and fully electric vehicles."  One of these will be an electric vehicle based on the Volkswagen Lavida and it will arrive in approximately four years.

Besides focusing on plug-in hybrid and electric vehicles, the agreement calls for a new C-segment Volkswagen model to be built at the plant in 2016.

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Volkswagen & SAIC team up on plug-in hybrids and electric vehicles