Volkswagen and Xpeng will collectively broaden two new VW-brand EVs for China in accordance with Xpeng’s electrical G9.
Chen Dongqiu | Visible China Crew | Getty Photographs
Volkswagen mentioned Wednesday that it has signed a deal to collectively broaden two new electrical automobiles 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 stocks ended the day up over 26% following the scoop.
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Underneath the deal, Volkswagen and Xpeng will broaden two midsize battery-electric fashions in accordance with the platform that underpins Xpeng’s G9, a midsize electrical crossover SUV.
In a separate remark confirming the deal, Xpeng mentioned the 2 new automobiles will even incorporate its complicated driver-assist tool.
The brand new EVs, which will likely be branded as VWs and bought best in China, are anticipated to release in 2026.
Volkswagen is paying $15 according to U.S.-traded percentage for its Xpeng stake and can obtain a seat at the EV maker’s board of administrators, matter to regulatory approvals.
Volkswagen additionally showed that its Audi subsidiary has signed a separate handle its longtime Chinese language three way partnership spouse, Shanghai-based SAIC Motor, to collectively broaden new Audi-branded EVs for the Chinese language marketplace. The plan is to broaden new EVs in segments the place Audi does no longer these days have entries in China, the corporate mentioned.
“We’re leveraging the strengths of Volkswagen and our companions to create synergies to carry further merchandise to marketplace sooner,” mentioned Ralf Brandstätter, Volkswagen’s China leader, in a remark. “In doing so, we focal point at the explicit wishes of our shoppers in China. On the identical time, we wish to considerably optimize construction and procurement prices.”