Hundreds of Volkswagen Staff at Xpeng Offices — Where Is This Heading?

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We reported final 12 months on Xpeng and Volkswagen teaming upand earlier this 12 months we reported on Volkswagen getting an important tech boost from Xpenghowever information of the partnership has largely been fairly quiet. Nevertheless, some reporting out of China this week bought my ears perked up a bit.

In keeping with reporting, lots of of Volkswagen workers members have been spending time in Xpeng places of work just lately. So, what’s going on there?

Xpeng co-president Brian Gu advised CNBC that what they’re engaged on collectively will assist Xpeng’s international ambitions. As I wrote earlier immediately, Xpeng just entered the Thailand and Malaysia markets. It has additionally just lately entered New Zealand and Australia. It is usually in Europe, however to a really restricted diploma up to now. Little doubt about it, the corporate have to 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?

Effectively, 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 is able to modernize Volkswagen autos for China, enhance their tech, and make them far more palatable for Chinese language consumers, who’ve advanced a ton in recent times and anticipate the most effective 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 a giant step ahead for them. Presumably, that’s the important thing factor “hundreds” of Volkswagen workers have been engaged on in Xpeng places of work. 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 way in which Gu places it, as summarized by CNBCis: “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.”

Nevertheless it looks as if the partnership is admittedly about collaboration and enchancment on each side. Keep in mind, Gu can be saying this partnership goes to assist Xpeng broaden 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 is likely to be serving to with design for manufacturing, manufacturing effectivity, rules and desires of various markets (the place Volkswagen has finished enterprise for years or a long time and Xpeng needs to enter), and different facets of the general manufacturing course of. Maybe the corporate can be serving to, particularly, with entry and extra success throughout Europe? It’s arduous to know. As all the time, partnerships like this are tough since chances are you’ll be companions in the intervening time however you’re additionally opponents. Nevertheless, if what Xpeng and Volkswagen are making collectively is best than what both of them may make on their very own, it appears that evidently must be seen as a constructive factor. Volkswagen can promote extra vehicles in China and Xpeng can promote extra vehicles in varied different markets.

Apart from Thailand, Malaysia, New Zealand, and Australia, Xpeng additionally intends to enter the UK, Eire, and Singapore. Nevertheless it have to be engaged on plans for a number of different markets with this new and improved platform. We’ll see.

To wrap up, except for 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 outdoors of China. We’ll see.