Staff member
Jan 28, 2019
This strategic collaboration is part of the German automaker’s ambitious efforts to capitalize on the rapid growth of the Chinese e-mobility market.

In an unexpected move to strengthen its foothold in China’s electric vehicle landscape, Volkswagen Group has made a significant investment of $700 million, acquiring a 5% stake in the promising EV startup, XPeng.

As per the technological framework arrangement between Volkswagen and XPeng, both companies will join forces to co-develop two mid-size electric models under the VW brand, tailored exclusively for the Chinese market. Expected to hit the roads in 2026, these EVs will complement Volkswagen’s existing MEB product line-up, bolstering its electric offerings in China.

To cement their collaboration, Volkswagen is making a strategic investment of approximately $700 million in XPeng, gaining a 4.99% stake at $15 per ADS. The deal will see Volkswagen become a significant shareholder in XPeng through a capital increase, and it...

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