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On February 29th, Volkswagen and Xiaopeng Motors announced that they had signed a platform and software joint development technology cooperation agreement.
In December 2023, Volkswagen Group completed the acquisition of 4.99% of the total issued and outstanding share capital of Xiaopeng Motors. It is understood that the technology cooperation agreement signed this time focuses on two Volkswagen brand mid size cars jointly developed by both parties in the early stage of cooperation, with the first product being an SUV model. Through this collaboration, the Volkswagen brand will rapidly and targetedly expand its existing product portfolio, thereby better meeting the needs of new customer groups in the rapidly growing Chinese electric vehicle market. Both sides will fully leverage their core strengths and jointly promote research and development.
This agreement also lays the foundation for broader and deeper strategic cooperation between the two sides in the future.
According to the agreement, both parties will purchase shared automotive and platform components through a joint procurement plan. With this plan and the strong supply chain system of Volkswagen Group, this plan aims to create cost advantages and make the medium-sized intelligent connected vehicle models jointly developed by both parties more economically competitive.
Volkswagen stated that through joint procurement and the application of innovative technologies in vehicle design and engineering, the product development cycle will be shortened by more than 30%. Volkswagen (China) Technology Co., Ltd. (VCTC) located in Hefei is the docking hub for this cooperation to ensure synergies.
"After announcing the strategic partnership last year, the two sides quickly completed the signing of this technology cooperation agreement, demonstrating the tremendous potential of this cooperation. Currently, the two teams are working at full speed towards a common goal and will fully leverage their advantages to create smart car products for customers." said Bered, the managing director of Volkswagen Group's China business.
Xiaopeng Motors Chairman and CEO He Xiaopeng stated that the strategic cooperation model between Volkswagen Group and Xiaopeng Motors has no precedent in the automotive industry. The deep consensus between the two sides on strategic cooperation and the strong trust bond created between their R&D teams over the past eight months have laid a solid foundation for the smooth launch of the project. Through the joint procurement plan, synergies have begun to be realized.
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