Shanghai (ZXZC)- On July 22, XPENG, a Chinese smart electric vehicle maker, and Volkswagen Group announced the signing of a joint development agreement for electronic and electrical (E/E) architecture. This follows their former strategic cooperation framework agreement signed on April 17, 2024.

Photo credit: XPENG

Under the new agreement, the two companies are now committed to developing industry-leading E/E architecture for Volkswagen's CMP and MEB platforms in China, namely CEA (China Electronic Architecture). The joint development agreement signifies an acceleration of E/E architecture development in China and lays the groundwork for expanding the scope of their strategic cooperation in this technology.

As part of this strategic cooperation, XPENG and Volkswagen have established joint development teams in Guangzhou and Hefei cities. Engineers from both companies will closely collaborate to accelerate the development process. The first vehicle model equipped with the jointly developed E/E architecture is expected to enter mass production within 24 months.

In addition to this new agreement, XPENG and Volkswagen will actively explore further cooperation opportunities to expand the application of their jointly developed E/E architecture. Both parties have reached a consensus on promoting the strategic cooperation in E/E architecture and aim to further strengthen their strategic partnership.

He Xiaopeng, Chairman and CEO of XPENG, stated, "The E/E architecture cooperation marks the third significant milestone in our long-term strategic partnership with the Volkswagen Group within a year. With the high level of trust and collaboration between our engineers, the development of our joint project has progressed rapidly, achieving remarkable synergies. I look forward to expanding our technical cooperation and deepening our win-win strategic partnership."

Ralf Brandstätter, Chairman and CEO of Volkswagen Group China, said, "The rapid progress in our close cooperation with XPENG highlights the immense potential of our partnership. By combining our technical expertise, we are jointly developing advanced E/E architecture. This collaboration marks a new step forward and is another milestone in Volkswagen Group's ‘In China, for China’ strategy, focusing on Chinese customer needs and driving technological innovation. From 2026, all Volkswagen brand’s electric models launched in the Chinese market will feature this powerful and efficient E/E architecture."

Last week, industry insiders revealed that hundreds of Volkswagen engineers have started working at XPENG’s headquarters in Guangzhou, emphasizing the unprecedented depth and breadth of their cooperation. Although this information was quickly retracted, XPENG responded that detailed news on further collaboration will be disclosed next week.