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XPeng (NYSE: XPEV) and Volkswagen Group Forge Long-Term Strategic Partnership

XPeng and Volkswagen Group Collaborate on B-class BEVs

XPeng (NYSE: XPEV), a renowned Chinese Smart EV organization, and the Volkswagen Group, a world-leading automobile manufacturer, have entered into a comprehensive strategic partnership. As part of the agreement, XPeng will issue Class A ordinary shares, around 4.99% of its outstanding share capital, to the Volkswagen Group for approximately $700 million.

Volkswagen Group Invests in XPeng

Under the strategic technical collaboration, XPeng and the Volkswagen Group will cooperatively develop two B-class battery electric vehicles (BEVs) under the Volkswagen brand, targeting the Chinese market. Utilizing XPeng’s G9 platform, along with its Connectivity and ADAS software, the newly developed models are set to commence production in 2026.

Exploring Further Opportunities for Collaboration

In addition to vehicle development, both parties intend to investigate further potential strategic cooperation in various areas, including future EV platforms, software technologies, and supply chain management. The feasibility of the Strategic Technical Collaboration is still under discussion.

XPeng and Volkswagen: Complementary Strengths for a Stronger Partnership

XPeng and Volkswagen Group bring highly complementary strengths to the long-term strategic partnership. The Chinese EV company’s Chairman and CEO, Mr. Xiaopeng He, expressed excitement about the opportunity to contribute XPeng’s full-stack technologies to the strategic partnership and create value for XPeng and its shareholders.

On the other hand, Mr. Ralf Brandstätter, Volkswagen AG Board Member for China, emphasized the importance of local partnerships in Volkswagen Group’s ‘in China for China’ strategy. He noted that the cooperation with XPeng will speed up the expansion of their local electric portfolio and better prepare them for the next innovation step in a highly competitive market environment. The collaboration is expected to create synergies, enable faster product development, and significantly optimize development and procurement costs.

Disclosure: No position. Spotlight Growth has no relationships with any of the companies mentioned in this article and did not receive payment in any form for its creation. This is an opinion article and is not meant to be financial advise. We are not broker-dealers or investment professionals. Please conduct your own due diligence. For more information on our disclosures, please visit:

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