Automakers

How VW, Xpeng will deepen their EV collaboration

Xpeng logo Arc 24
(BLOOMBERG)
R
By:
Reuters
July 22, 2024 08:49 AM

Chinese electric vehicle maker Xpeng has established project houses for engineers in partnership with Volkswagen Group to accelerate the development process of new EV architecture, the Chinese automaker said in a statement.

The new establishments, to be located in China's Guangzhou and Hefei, are warehouses for engineers from both parties to work together.

The warehouses are aimed at helping the parties begin production for jointly developed architecture - configuration of electronic components, modules, and network within a vehicle - two years from now.

"From 2026, all electric vehicles of the Volkswagen brand in China will be equipped with this very powerful and efficient architecture," said Ralf Brandstätter, member of the board of management of VW Group for China.

The establishments are part of an agreement between the two parties, where VW plans to use its new architecture for intelligent and electric cars to make more affordable EVs in its biggest market.

Xpeng and VW forged a partnership last year when VW bought 4.99 percent of Xpeng for around $700 million with plans to jointly launch two VW-branded EV models by 2026.

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