Volkswagen and Chinese EV startup Xpeng Motors are to jointly develop two EVs for the Chinese market. The VW-branded cars are scheduled for delivery in 2026.
As part of the agreement, Volkswagen will invest US$700 million (5 billion yuan) in a 5-percent stake in Xpeng and a seat on the board.
XPENG stock rose 40 percent on the news, reaching its highest level in a year.
Volkswagen aims to swiftly introduce products for Chinese customers while optimizing development and procurement costs.
In today’s EV market, Chinese companies have a clear lead in technology and expertise, while the competitiveness of joint-venture brands has declined.
