Volkswagen And XPeng To Bring Two EVs To Life
After announcing their partnership in July, Volkswagen AG (OTC: VWAGY) and XPeng Inc (NYSE: XPEV) revealed on Thursday they expanded their partnership to jointly develop an intelligent connected vehicle models for the Chinese market.
The two EVs enhanced with an intuitive and connected digital experience, as well as advanced automated driving functions, should hit the market in 2026. Reuters reported that the first car that Volkswagen and XPeng will develop together will be an SUV.
The Power Of Synergy To Reduce EV Development Time
Through joint procurement program for vehicle and platform parts, along with the use of advanced technologies during the design and engineering phase, Volkswagen and XPeng will reduce the development time of these two EVs by more than 30%.
XPeng is heavily betting on AI to combat rivals.
Earlier this month, XPeng revealed it plans to commit $486.36 million to AI development. The primary focus of the investment will be to enhance AI technology for intelligent driving. Xpilot, its existing driver assistance system enables semi-autonomous functions in its vehicles.
While its rivals are scaling back in fear, XPeng is viewing the pessimistic macroeconomic background as an opportunity.
Also in February, XPeng revealed its plans to hire 4,000 people this year as it aims to release around 30 new products or upgraded models duringt the next three years. XPeng’s plans to increase its workforce by 25% and make big AI investments is quite a contrast compared to expansion strategies of its rivals.
This year, XPeng will also debut its first models priced over 300,000 yuan and at 150,000 yuan. The two models, codenamed “F57”and “MONA” will target new segments of the market, the ones that XPeng needs to fill the price gap between 100,000 and 400,000 yuan.
