Xpeng and Volkswagen Collaborate on EV Architecture Development

Chinese electric vehicle (EV) maker Xpeng announced on Monday that it has established project houses for engineers in partnership with German automaker Volkswagen AG to accelerate the development process of new EV architecture.

New Project Houses:

The new establishments in Guangzhou and Hefei, China, serve as warehouses for engineers from both Xpeng and Volkswagen to collaborate.

Purpose of the Warehouses:

These project houses are designed to help both companies begin production of jointly developed EV architecture—the configuration of electronic components, modules, and networks within a vehicle—within two years.

“From 2026, all-electric vehicles of the Volkswagen brand in China will be equipped with this very powerful and efficient architecture,” said Ralf Brandstätter, a member of the board of management of Volkswagen AG for China.

Agreement Details:

This collaboration is part of an agreement between Xpeng and Volkswagen, where Volkswagen plans to leverage the new architecture for intelligent and electric cars to produce more affordable EVs in its largest market.

Partnership Background:

Xpeng and Volkswagen forged their partnership last year when Volkswagen acquired a 4.99% stake in Xpeng for around $700 million. The agreement includes plans to jointly launch two Volkswagen-branded EV models by 2026.