XPENG-W signed an agreement with Volkswagen Group to expand strategic cooperation on electronic and electrical architecture technology

According to the Zhitong Finance APP, XPeng Motors-W (09868) announced that following the signing of the strategic cooperation agreement for the joint development of the electronic and electrical architecture technology between XPeng Motors and the Volkswagen Group on July 22, 2024, the industry-leading electronic and electrical architecture jointly developed by both parties is accelerating its development at "Chinese speed" and has achieved key project milestones. Based on the consensus of both parties to expand the application scope of the electronic and electrical architecture and to platformize the electronic and electrical architecture across platforms and power energy forms within the Volkswagen Group, both parties have signed an agreement to expand the strategic cooperation on electronic and electrical architecture technology. The signing of this expanded cooperation agreement marks that the industry-leading electronic and electrical architecture jointly developed by both parties will not only be integrated into Volkswagen's pure electric vehicle platform in the Chinese market but will also be deployed to Volkswagen's fuel and plug-in hybrid vehicle platforms in the Chinese market, thereby extending the technical strategic cooperation of both parties to a broader market. At the same time, this will accelerate the realization of the Volkswagen Group's strategy for software-defined vehicles, enhancing the global competitiveness of Volkswagen Group's models. Through the platformization of the electronic and electrical architecture, rapid software iteration and remote upgrades will be achieved, significantly shortening the development cycle of vehicle models. The R&D teams of both parties adhere to the ultimate platform design philosophy, designing and verifying that the electronic and electrical architecture developed for the pure electric vehicle platform can also be deployed to the fuel and plug-in hybrid vehicle platform. This is an important achievement of joint R&D and technological innovation between both parties, showcasing the advantages and strategic value of their long-term strategic cooperation. This will significantly expand the number and scale of models equipped with this advanced electronic and electrical architecture in the Chinese market, enabling the Volkswagen Group to achieve significant platform-scale effects and product competitiveness. "This expanded cooperation agreement is another important milestone in the cooperation journey following the signing of the joint development agreement on July 22, 2024. This move not only confirms the deep mutual trust in the long-term strategic partnership between both parties but also highlights their firm determination and forward-looking vision for continuous technological innovation and value creation in the core technology field of intelligent electric vehicles," said He Xiaopeng, Chairman and CEO of XPeng Motors. Ralf Brandstätter, Managing Director responsible for the China business of the Volkswagen Group and Chairman and CEO of Volkswagen Group (China), stated: "The application of advanced technological achievements should not be limited to a single power form. The brands under the Volkswagen Group are always committed to providing customers with the most advanced solutions in various market segments. By extending the CEA architecture to the Group's strong fuel vehicle product matrix, the Group will further consolidate its technological leadership position in the traditional power vehicle market. At the same time, in the fiercely competitive Chinese automotive market, we continuously optimize our cost structure to ensure that we always provide attractive vehicle options for our customers. This will create a stronger strategic depth for us and provide more space for targeted cutting-edge innovation investments, helping us accelerate towards a fully connected intelligent electric future."