Volkswagen AG is in talks with China’s Didi Chuxing to manage part of the ride-hailing company’s fleet of cars and help develop “purpose-built” vehicles for Didi’s services, according to a report by Reuters.
The companies are expected to form a joint venture and a deal may be signed between the companies soon. Volkswagen will also initially manage a fleet of about 100,000 new vehicles for Didi, of which two-thirds will be Volkswagen Group cars, the report says.
The German automaker will also jointly buy some new cars with Didi to allow the Chinese company to expand its fleet. The two companies will also design and develop dedicated vehicles eventually.