Volkswagen Considers Using Xpeng Software for European Models
Volkswagen may implement its China-developed electronic architecture across European mass-market brands, potentially sidelining a $5.8 billion software partnership with Rivian.
The Volkswagen Group is considering the implementation of its China Electronic Architecture software across its mass-market European brands, including VW, Skoda, and Cupra. Developed in cooperation with Chinese electric vehicle maker Xpeng, the system could potentially power approximately three-quarters of next-generation models in Europe.
Core brand chief Thomas Schaefer is expected to present the proposal to management on Tuesday. This strategic shift would potentially sideline Rivian, the U.S. partner in a $5.8 billion software investment led by CEO Oliver Blume.
Volkswagen has historically maintained separate software architectures for Chinese and Western markets to address scaling difficulties encountered by its in-house software unit, Cariad. The company declined to comment on the report.
