Volkswagen buys stake in Xpeng, will jointly develop two new EVs with the Chinese automaker

Volkswagen buys stake in Xpeng, will jointly develop two new EVs with the Chinese automaker


Volkswagen and Xpeng will jointly develop two new VW-brand EVs for China based on Xpeng’s electric G9.

Chen Dongqiu | Visual China Group | Getty Images

Volkswagen said Wednesday that it has signed a deal to jointly develop two new electric vehicles for China with Chinese EV maker Xpeng. As part of the deal, Volkswagen will invest about $700 million in Xpeng, taking a 4.99% stake.

Xpeng’s U.S.-traded shares ended the day up over 26% following the news.

related investing news

We're selling some shares of this health-care company and changing our rating

CNBC Investing Club

Under the deal, Volkswagen and Xpeng will develop two midsize battery-electric models based on the platform that underpins Xpeng’s G9, a midsize electric crossover SUV.

In a separate statement confirming the deal, Xpeng said the two new vehicles will also incorporate its advanced driver-assist software.

The new EVs, which will be branded as VWs and sold only in China, are expected to launch in 2026.

Volkswagen is paying $15 per U.S.-traded share for its Xpeng stake and will receive a seat on the EV maker’s board of directors, subject to regulatory approvals.

Volkswagen also confirmed that its Audi subsidiary has signed a separate deal with its longtime Chinese joint venture partner, Shanghai-based SAIC Motor, to jointly develop new Audi-branded EVs for the Chinese market. The plan is to develop new EVs in segments where Audi does not currently have entries in China, the company said.

“We are leveraging the strengths of Volkswagen and our partners to create synergies to bring additional products to market faster,” said Ralf Brandstätter, Volkswagen’s China chief, in a statement. “In doing so, we focus on the specific needs of our customers in China. At the same time, we want to significantly optimize development and procurement costs.”



Source

What wealthy parents need to know about giving real estate to their kids
Business

What wealthy parents need to know about giving real estate to their kids

A local house with a porch in Edgartown on Martha’s Vineyard, Massachusetts, USA. Wolfgang Kaehler | Lightrocket | Getty Images A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox. The great wealth […]

Read More
The summer box office sizzled, but brace for a cooldown until November
Business

The summer box office sizzled, but brace for a cooldown until November

Movie stills from Disney’s “Lilo & Stitch” and “Fantastic Four” and Warner Bros. Discovery’s “Superman.” Courtesy: Disney | 20th Century Studios | Marvel Studios | Warner Bros. Discovery Superheroes, dinosaurs and a genetically altered alien dog helped propel the summer box office haul above 2024 levels, but that momentum is about to stall. Heading into […]

Read More
John Deere faces a crossroads amid decreasing demand, increasing investments
Business

John Deere faces a crossroads amid decreasing demand, increasing investments

Attendees view a John Deere 7R 270 row crop tractor at the Deere & Co. booth during the World Ag Expo at the International Agri-Center in Tulare, California on February 11, 2025. Patrick T. Fallon | AFP | Getty Images John Deere is facing a crossroads as the company continues to see weaker demand in […]

Read More