VW is continuing to advance a cooperation with the Chinese startup XPeng and wants to develop electric cars together with them in the future. The first two vehicles are scheduled to roll off the assembly line in 2026.
VW has been cooperating with the Chinese startup XPeng since last year – now it's getting concrete. Both companies said in a joint statement that they wanted to work closely together in the future on the development of electric cars. For this purpose, an agreement was concluded on the mutual use of vehicle and platform parts.
The aim is to reduce the costs of development. Joint purchasing and use of technologies could reduce development time by around 30 percent during the design and construction phase, VW said. Specifically, it is initially about two battery-powered B-class vehicles. The shortened development time should quickly pay off. These first two jointly developed vehicles are scheduled to roll off the assembly line as early as 2026.
XPeng is no stranger
XPeng is one of several e-car startups that have grown in size in recent years after China's state and party leadership declared the expansion of e-mobility an economic policy goal. The electric car manufacturer is around ten years old.
Well-known investors include the online company Alibaba and the iPhone producer Foxconn. Last year the group sold around 140,000 cars, most of them in China. The P7 model was also presented internationally in 2023. So far the group is making losses.
Pressure to act at VW
Like all German manufacturers, VW is under pressure in China. The Wolfsburg-based company recently handed over its market leadership to the Chinese manufacturer BYD. He, in turn, is now also aiming for the German and European markets. The first car freighter with thousands of electric cars on board docked in Germany at the beginning of the week.
The collaboration with XPeng should now lead VW out of the crisis in China. In fact, many Chinese customers prefer to buy domestic products. They are equipped with much more entertainment than German brands. These are considered comparatively purist in China.
The car expert Jürgen Pieper therefore believes the new project makes sense from VW's point of view. The Chinese are “years ahead” of the Germans, especially when it comes to software solutions, Pieper told tagesschau.de. “Then saying we can't do it alone and looking for a partner who can is a good idea.”
Cooperation is not without controversy
However, the collaboration with XPeng is also viewed critically. Analysts complain that the dependence on China is too great. It is precisely this kind of cooperation that VW will not be able to reduce, known in technical jargon as “de-risking” – on the contrary.
There is also criticism of VW from human rights activists. Volkswagen faces allegations of involvement in forced labor in Xinjiang. In addition to a factory, the group also operates a test track in the western Chinese part of the country together with a local joint venture partner.
According to research by the “Handelsblatt”, Uighur forced laborers were used to build the test track. The majority Muslim Uyghur minority has been systematically oppressed by the communist government for years. Auditors commissioned by VW investigated the allegations and came to the conclusion that there were no human rights violations at the plant there.
With information from Samir Ibrahim, ARD finance editorial team and Benjamin Eyssel, ARD Beijing studio.
Benjamin Eyssel, ARD Beijing, tagesschau, February 29, 2024 12:21 p.m
