Volkswagen and Xpeng will collectively develop two new VW-brand EVs for China based mostly on Xpeng’s electrical G9.
Chen Dongqiu | Visual China Group | Getty Images
Volkswagen mentioned on Wednesday that it has signed a deal to collectively develop two new electrical automobiles for China with Chinese 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 had been up over 40% on Wednesday morning following the information.
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Under the deal, Volkswagen and Xpeng will develop two midsize battery-electric fashions based mostly on the platform that underpins Xpeng’s G9, a midsize electrical crossover SUV.
In a separate assertion confirming the deal, Xpeng mentioned that the 2 new automobiles may also incorporate its superior driver-assist software program.
The new EVs, which can 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 cope with its longtime Chinese three way partnership associate, Shanghai-based SAIC Motor, to collectively develop new Audi-branded EVs for the Chinese market. The plan is to develop new EVs in segments the place Audi doesn’t at the moment have entries in China, the corporate mentioned.
“We are leveraging the strengths of Volkswagen and our partners to create synergies to bring additional products to market faster,” mentioned Ralf Brandstätter, Volkswagen’s China chief, in an announcement. “In doing so, we focus on the specific needs of our customers in China. At the same time, we want to significantly optimize development and procurement costs.”
Source: www.cnbc.com”