22 July (Business Emerge): In an ambitious move to expedite the development of next-generation electric vehicle (EV) architecture, Xpeng and Volkswagen AG have announced the establishment of dedicated project houses. These new facilities, situated in Guangzhou and Hefei, China, will serve as collaborative spaces for engineers from both companies to work in tandem.
This strategic partnership aims to facilitate the production of a new, jointly-developed EV architecture—an intricate configuration of electronic components, modules, and networks within a vehicle—by 2026. “From 2026, all electric vehicles of the Volkswagen brand in China will be equipped with this very powerful and efficient architecture,” stated Ralf Brandstätter, member of the board of management of Volkswagen AG for China.
The initiative is a significant step in an agreement between Xpeng and Volkswagen, with the latter intending to leverage this advanced architecture to produce more affordable intelligent and electric vehicles for the Chinese market. The collaboration marks a continuation of their partnership formed last year, following Volkswagen’s acquisition of a 4.99% stake in Xpeng for approximately $700 million. This alliance also includes plans to introduce two Volkswagen-branded EV models by 2026.