Xpeng and Volkswagen Join Hands on EE Architecture Technology

On April 17, 2024, Xpeng, China's intelligent EV maker, and the global auto giant Volkswagen Group signed a strategic partnership framework agreement centered on E/E Architecture technology. The partnership's goal is to develop and integrate Xpeng's newest E/E Architecture into Volkswagen's China Main Platform (CMP).

Xpeng's vertically integrated E/E architecture is essential to the deal

Xpeng's in-house-developed E/E Architecture, which centralizes its hardware and software technology, enables rapid, cross-platform program development. The design makes use of a central processing and domain control framework, which enables high-speed data transmission across core domains over Gigabit Ethernet.

Volkswagen adopts Xpeng's high-tech E/E architecture.

Beginning in 2026, Volkswagen will manufacture VW-branded EVs in China using Xpeng's cutting-edge E/E Architecture. Volkswagen has stressed its commitment to China's industrial ecosystem as part of its "In China, for China" policy.

Increasing Innovation and Low-Cost Structure.

According to He Xiaopeng, CEO of Xpeng, the latest agreement enables Smart EV products to be technologically sophisticated while remaining cost-effective. Ralf Brandstätter, Volkswagen AG's Member of the Board for China, adds that high cost-effectiveness and rapid development are critical to their competitiveness in China's dynamic market.

The current deal is part of Volkswagen's attempts to co-develop EV cars with Xpeng. Last year, Volkswagen invested around $700 million to acquire a 4.99 percent interest in Xpeng. They announced plans to jointly build two Volkswagen-branded EV cars for China's mid-size vehicle market.