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We reported final 12 months on Xpeng and Volkswagen teaming up, and earlier this 12 months we reported on Volkswagen getting an vital tech increase from Xpeng, however information of the partnership has principally been fairly quiet. Nonetheless, some reporting out of China this week bought my ears perked up a bit.
Based on reporting, lots of of Volkswagen employees members have been spending time in Xpeng workplaces not too long ago. So, what’s going on there?
Xpeng co-president Brian Gu advised CNBC that what they’re engaged on collectively will assist Xpeng’s world ambitions. As I wrote earlier right this moment, Xpeng simply entered the Thailand and Malaysia markets. It has additionally not too long ago entered New Zealand and Australia. It is usually in Europe, however to a really restricted diploma to this point. Little question about it, the corporate should be even be trying on the Americas and Africa.
However what does this actually imply? What’s Volkswagen getting from Xpeng, and the place will that lead? What’s Xpeng getting from Volkswagen, and the place will that lead?
Nicely, again from the beginning, it was indicated that this partnership would result in two new Volkswagen fashions for China which are based mostly on the identical platform because the Xpeng G9 makes use of. This could modernize Volkswagen autos for China, enhance their tech, and make them far more palatable for Chinese language patrons, who’ve advanced a ton in recent times and count on one of the best and latest expertise. By many accounts, Xpeng is on the entrance of the marketplace for the “smart” facet of what they name “smart electric vehicles” now. So, offering the brains and muscle of latest Volkswagen EVs ought to be an enormous step ahead for them. Presumably, that’s the important thing factor “hundreds” of Volkswagen employees have been engaged on in Xpeng workplaces. In any case, if it’s based mostly on the G9 platform, it’s actually extra of an Xpeng than a Volkswagen, however then Volkswagen’s bought to get its imprint and design on there.
The best way Gu places it, as summarized by CNBC, is: “The German company’s workers are spending more time at Xpeng’s offices than the startup’s are at Volkswagen’s, Gu said. They are learning about the startup’s technology.”
However it looks like the partnership is de facto about collaboration and enchancment on either side. Keep in mind, Gu can be saying this partnership goes to assist Xpeng increase globally. “Gu emphasized the forthcoming vehicles will be ‘very different’ from those that [are] currently sold by Xpeng or Volkswagen. He said the cars would likely have ‘better range, charging, much smarter driving, more feature luxury technology, for the same price, potentially.’”
I ponder how a lot Volkswagen may be serving to with design for manufacturing, manufacturing effectivity, rules and wishes of various markets (the place Volkswagen has carried out enterprise for years or a long time and Xpeng desires to enter), and different features of the general manufacturing course of. Maybe the corporate can be serving to, specifically, with entry and extra success throughout Europe? It’s onerous to know. As at all times, partnerships like this are tough since it’s possible you’ll be companions in the meanwhile however you’re additionally rivals. Nonetheless, if what Xpeng and Volkswagen are making collectively is healthier than what both of them may make on their very own, evidently needs to be seen as a optimistic factor. Volkswagen can promote extra vehicles in China and Xpeng can promote extra vehicles in numerous different markets.
Except for Thailand, Malaysia, New Zealand, and Australia, Xpeng additionally intends to enter the UK, Eire, and Singapore. However it should be engaged on plans for a number of different markets with this new and improved platform. We’ll see.
To wrap up, other than Xpeng serving to Volkswagen modernize the tech in its Chinese language fashions, I ponder how a lot that’s going for use for Volkswagen vehicles exterior of China. We’ll see.
