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Sunday, February 2, 2025

Volkswagen Will get Important Tech Increase in China from Xpeng


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I feel many EV followers and followers have been impressed and optimistic about Volkswagen Group’s give attention to electrification lately — mainly, for the reason that massive Dieselgate scandal shook every part up. Volkswagen Group got here up with one of many first massive plans from legacy automakers to roll out dozens of totally electrical fashions, and to make their electrification push their main focus. Nonetheless, I feel many individuals have equally been fairly unimpressed with Volkswagen’s software program and modern-tech chops. Software program and the early ID fashions weren’t one of the best of pals. Volkswagen’s touchscreens are okay, however nothing to put in writing residence about within the 2020s. Volkswagen is nice at producing strong electrical automobiles (or automobiles on the whole) at excessive volumes world wide. The corporate makes high quality automobiles and does so at scale. But it surely might use a hand getting on the leading edge with the infotainment and semi-autonomous driving.

That’s the place Xpeng steps in. Xpeng, as a younger “sensible car” startup created by tech guys, is likely one of the greatest on this planet at seamlessly and attractively integrating high-quality tech and software program into its autos. It might be struggling to scale up and stand above the group within the extremely aggressive Chinese language market, and now additionally within the extremely aggressive European market, however I nonetheless suppose it’s one of the vital superior, greatest carmakers on the planet. Volkswagen Group apparently thinks in order nicely. Having the humility to see that it wanted assist, Volkswagen partnered with Xpeng 9 months in the past to develop tech and automobiles collectively. This partnership has been rolling strongly sufficient that a number of bulletins have been made since then about increasing their relationship.

On the finish of February, they introduced quick co-development of two new sensible automobiles. Now, this week, the 2 have introduced co-development of some new electrical car structure. “The Volkswagen Group and XPENG increase their platform and software program partnership: Joint improvement of the China Electrical Structure, a zonal Electrical/Digital structure, to make China-specific electrical car fashions match for the subsequent leap in innovation,” they write. “Decisive step in direction of clever related autos: Zonal E/E structure to cut back complexity of digital management techniques and allow quick and cost-efficient growth of digital companies and capabilities — with steady system updates ‘over the air’.”

Right here’s a bit extra: “Along with XPENG, Volkswagen is introducing the China Electrical Structure (CEA), a zonal Electrical/Digital (E/E) structure. Collectively developed by consultants from XPENG, Volkswagen China Expertise Firm (VCTC) and CARIAD China, the CEA will make sure the fast growth of digital companies within the Volkswagen model’s China-specific autos. Superior options similar to autonomous driving could be seamlessly built-in and repeatedly up to date and prolonged ‘over the air’ (‘OTA’). On the identical time, due to the zonal construction, the variety of digital management models in earlier techniques could be lowered by as much as 30 per cent. Because of this, the zonal E/E structure will probably be price aggressive with native choices. The brand new digital community is envisaged for use in regionally produced VW model electrical autos from 2026. The transfer will strengthen Volkswagen’s ‘electrical offensive’ and mark the most recent decisive step as one of many trade leaders within the age of clever related autos (ICV).”

Extra technical speak could be learn in the press launch, however you get the thought. The primary mannequin utilizing this structure, an SUV, is meant to be launched in 2026.

General, I’m very bullish on this partnership. Volkswagen has a fantastic legacy model, however it would profit tremendously from a partnership that may put it on the leading edge of recent tech once more. In the meantime, Xpeng might use some further work (and income) and may gain advantage from a extra steady stream of demand. We’ll see.


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