- The two carmakers have established project houses in Guangzhou and Hefei.
- This new architecture will slash costs and require 30% fewer ECUs.
- VW will launch EVs in China underpinned by three distinct vehicle platforms.
Xpeng and Volkswagen will develop a new electrical and electronic (E&E) architecture to underpin all future battery-electric vehicles produced in China by VW.
Through a ‘master agreement’ signed by the two manufacturers, two project houses have been established in Guangzhou and Hefei, allowing VW and Xpeng engineers to work together on the new systems. The first electric vehicle utilizing the new architecture will be ready to hit the production line in just 24 months.
Read: VW Teams Up With Xpeng To Build 2026 Lower-Cost EV Platform
Twelve months ago, VW purchased a 4.99% stake in Xpeng in a transaction worth $700 million. The investment will expand VW’s presence in the Chinese EV space and result in the development of at least two EVs from the German brand.
“The rapid progress in the close cooperation between the Volkswagen Group and XPENG underlines the great potential of this partnership,” Volkswagen board member Ralf Brandstätter said. “With the joint development of a highly modern E/E Architecture, in which both partners contribute their technological expertise, we are now taking the next step together. From 2026, all all-electric vehicles of the Volkswagen brand in China will be equipped with this very powerful and efficient architecture.”
In April, it was revealed that the new architecture would slash costs, in part due to its requirement for 30% fewer ECUs. It will also allow for the faster implementation of advanced automated driving functions and provide support for over-the-air updates.
Two mid-range vehicles are tipped to be the first to use the new electrical systems, one of which will be an SUV. The China Main Platform (CMP) is being co-developed by Volkswagen China Technology Company, SAIC Volkswagen, and FAW-Volkswagen and will be used for more affordable models, including at least four smaller VW vehicles.
“The E/E Architecture collaboration marks the third major milestone we achieved within a year in our long-term strategic partnership with Volkswagen Group,” added Xpeng chairman and chief executive Mr. Xiaopeng He.
