Volkswagen Group has taken a 5 p.c stake value $700 million in EV startup XPeng in a shock transfer that is a part of the German firm’s efforts to strengthen its place on the Chinese language automobile market.
Along with the XPeng deal, Volkswagen Group has launched extra particulars on the cooperation deal between Audi and SAIC. The automaker says the purpose with the 2 offers is to “swiftly faucet into new buyer and market segments” to be able to leverage the potential of China’s fast-growing e-mobility market.
As a part of the Volkswagen model’s technological framework settlement with XPeng, the 2 corporations will initially collectively develop two VW model mid-size electrical fashions for the Chinese language market. The EVs will complement Volkswagen’s MEB product portfolio and are to be launched in 2026 in China.
As a part of the shut and long-term strategic cooperation, the Volkswagen Group stated it will make investments roughly $700 million in XPeng, which is equal to a 4.99 p.c stake at $15 per ADS, the place 1 ADS (American Depositary Share) represents 2 Class A Shares.
Volkswagen Group will change into an XPeng shareholder by the use of a capital enhance, and can maintain a seat as an observer on the XPeng board of administrators.
“With XPENG, we now have one other sturdy associate that is likely one of the main producers in China in key expertise areas. In a aggressive and dynamic market atmosphere, we’re leveraging the strengths of Volkswagen and our companions to create synergies to convey further merchandise to market sooner. In doing so, we concentrate on the particular wants of our clients in China. On the identical time, we wish to considerably optimize improvement and procurement prices.”
Ralf Brandstätter, Volkswagen AG Board Member for China
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As for Audi’s cope with SAIC Motor, the 2 events have signed a strategic memorandum to additional broaden current cooperation. It will embrace joint improvement actions that can prolong Audi’s portfolio of absolutely linked electrical automobiles on supply within the premium section “swiftly and effectively.”
The cooperation will begin with electrical fashions in a section the place Audi doesn’t as but have a presence in China. The collectively developed EVs will function state-of-the-art software program and {hardware}, providing Chinese language clients an intuitive, linked digital expertise.
“Following on from the primary two profitable years of cooperation, we are actually strengthening our long-term dedication to SAIC. Our intention is to collectively develop next-generation premium ICV swiftly and effectively ‘in China for China.’ Even nearer cooperation with an area associate equivalent to SAIC helps Audi’s ambition to create a premium market section for all-electric and absolutely linked automobiles in China.”
Jürgen Rittersberger, Member of the Board of Administration of AUDI AG liable for Finance, IT and Authorized Affairs
Each agreements additionally embrace a deliberate, future joint improvement of recent native platforms for the subsequent era of clever, absolutely linked automobiles (ICV). It will result in an extra growth of the VW Group’s product vary in China “in significantly promising buyer and market segments.”
Volkswagen stated that particulars of cooperation on future e-platform are the topic of additional negotiations between Volkswagen and its companions. The accountability for the event of recent Volkswagen fashions shall be assumed by the lately based Volkswagen Group China Expertise Firm (VCTC), which can work along with XPeng.
