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Volkswagen cements relationship with XPENG in China

Image Credit: Xpeng Motors

Volkswagen further cemented its collaboration with Chinese automaker XPENG. Volkswagen Group and XPENG plan to jointly develop industry-leading E/E Architecture for locally produced vehicles in China. 

The German automaker and XPENG signed a Master Agreement outlining the terms of their collaboration. According to the companies’ press release, their E/E Architecture will be based on Volkswagen’s China Main Platform (CMP) and Modular Electric Drive Matrix (MEB) platform. VW and XPENG expect to start production on their jointly developed E/E Architecture within 24 months of its announcement dated July 21, 2024. 

VW and XPENG’s latest announcement deepens the two companies’ relationship. Earlier this year, the two companies agreed to develop two electric vehicles (EVs) together. The two upcoming EVs will be mid-sized SUVs and wear Volkswagen’s badge. The EVs will be exclusively available in mainland China. 

At the beginning of the year, Volkswagen revealed its intention to strengthen its position in China. The German car manufacturer announced changes to its Board of Management and appointed Thomas Ullrich as the Chief of Technology Officer (CTO) in China. In April, VW adopted an “in China, for China” strategy. 

“China is our second home market. We continue to drive our strategy forward systematically and are going on the offensive with its execution. 

“We focus on our Chinese customers’ expectations and the accelerated time-to-market of our products. At the same time, we are pushing pioneering technologies, increasing cost efficiency, and deepening local partnerships,” said Volkswagen Group CEO Oliver Blume.

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Volkswagen cements relationship with XPENG in China
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