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Volkswagen, Xpeng to develop two new new EVs for China

Volkswagen and Xpeng will collectively develop two new VW-brand EVs for China primarily based on Xpeng’s electrical G9.

Chen Dongqiu | Visible China Group | Getty Photos

Volkswagen stated on Wednesday that it has signed a deal to collectively develop two new electrical autos for China with Chinese language EV maker Xpeng. As a part of the deal, Volkswagen will make investments about $700 million in Xpeng, taking a 4.99% stake.

Xpeng’s U.S.-traded shares have been up over 40% on Wednesday morning following the news.

Below the deal, Volkswagen and Xpeng will develop two midsize battery-electric fashions primarily based on the platform that underpins Xpeng’s G9, a midsize electrical crossover SUV.

In a separate statement confirming the deal, Xpeng stated that the 2 new autos may even incorporate its superior driver-assist software program.

The brand new EVs, which will probably be branded as VWs and offered solely in China, are anticipated to launch in 2026.

Volkswagen is paying $15 per U.S.-traded share for its Xpeng stake and can obtain a seat on the EV maker’s board of administrators, topic to regulatory approvals.

Volkswagen additionally confirmed that its Audi subsidiary has signed a separate take care of its longtime Chinese language three way partnership associate, Shanghai-based SAIC Motor, to collectively develop new Audi-branded EVs for the Chinese language market. The plan is to develop new EVs in segments the place Audi doesn’t at the moment have entries in China, the corporate stated.

“We’re leveraging the strengths of Volkswagen and our companions to create synergies to deliver further merchandise to market quicker,” stated Ralf Brandstätter, Volkswagen’s China chief, in a press release. “In doing so, we concentrate on the particular wants of our prospects in China. On the identical time, we wish to considerably optimize growth and procurement prices.”

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