Chinese electric vehicle startup Xiaopeng and the Volkswagen Group announced that they have signed a framework agreement for technical cooperation related to Electric/Electronic Architecture (E/E Architecture) to produce Volkswagen brand electric vehicles in the Chinese market. The two companies plan to jointly develop Xiaopeng’s latest E/E Architecture and integrate it into Volkswagen’s central Chinese platform (CMP). Xiaopeng added that the jointly developed E/E Architecture is expected to be the base for Volkswagen’s electric vehicles produced in China starting in 2026.
Xiaopeng’s self-developed E/E Architecture is at the core of vertically integrated full-stack hardware and software technology, allowing for rapid iteration of cross-platform software, including ADAS and connectivity OS, from basic hardware to vehicle platforms.
Xiaopeng’s latest E/E Architecture uses a central computing and domain controller-based architecture to provide a high-performance in-vehicle computing environment and competitive cost structure. It supports high-speed gigabit Ethernet data transmission between the central and ADAS domain controllers.
Xiaopeng emphasized that many electronic control devices are integrated into domain controllers, providing a highly integrated architecture and competitive cost structure. The E/E architecture supports efficient whole-vehicle OTA for both customer vehicles and vehicles at the end of the production line.
Volkswagen emphasized that this is part of a strategy to increase innovation in China, a “for China, in China” strategy.
This agreement is part of Volkswagen’s joint efforts to develop electric vehicles with Xiaopeng. Volkswagen announced plans to jointly develop two Volkswagen brand electric vehicle models targeting the Chinese mid-size car market by investing about $700 million in July 2023 to acquire approximately 4.99% of Xiaopeng’s shares.
Accordingly, Xiaopeng and Volkswagen plan to build the two models using each company’s core capabilities, the Xiaopeng G9 platform, connectivity, and ADAS software.
Xiaopeng announced a new agreement to accelerate collaborative model development in February through joint sourcing with Volkswagen and cost savings. On April 11, Volkswagen announced plans to invest 2.5 billion euros ($2.66 billion) to expand its production and innovation center in Hefei, Anhui Province, and enhance local research and development capabilities.
Volkswagen plans to produce two Volkswagen brand models jointly developed with Xiaopeng in Hefei. The first of these is expected to be a mid-size SUV that will go into production in 2026.
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