On July 26, the Volkswagen Group announced that Volkswagen had reached a technical framework agreement with XPeng. The two sides plan to jointly develop two electric models of Volkswagen brand for the Mid-size car market in China. These two new cars specifically designed for the Chinese market will supplement the product portfolio based on the MEB platform and are planned to enter the market by 2026. The relevant cooperation content depends on the final agreement reached.
At the same time, Volkswagen Group will increase its capital to XPeng by about 700 million dollars, and acquire about 4.99% of the equity of XPeng at the price of 15 dollars per ADS. After the completion of the transaction, Volkswagen Group will obtain an observer seat on the board of XPeng.
Edited by Cassie Li, lixiangying@mysteel.com