Leidi.com Lei Jianping July 26
Volkswagen Group will invest approximately US$700 million in Xpeng. Volkswagen will acquire a 4.99% stake in Xpeng Motors at a price of US$15 per American Depositary Receipt (ADR), and will have an observer seat on the latter's board of directors.
Volkswagen Group has also signed a long-term cooperation technology framework agreement with Xpeng Motors. In the initial stage of cooperation, they will jointly develop two Volkswagen brand electric models targeting the mid-size car market in the Chinese market, which will be launched in 2026, subject to the final agreement.
During the same period, Audi signed a strategic memorandum of understanding with its joint venture partner SAIC to further expand the existing cooperation. Under the aforementioned agreement, the two parties also plan to jointly develop a new local platform for the next generation of Intelligent Connected Vehicles (ICV) in the future.
This is also the first time a multinational brand has invested in a domestic new energy vehicle company. Prior to this, Weilai Automobile received US$740 million in financing from Middle East capital. This also shows that domestic new energy companies are getting more and more attention from international capital.
Affected by this news, Xiaopeng Motors’ stock price in Hong Kong stocks rose by 33.88% today; the company’s closing price was 81 Hong Kong dollars, and its market value was 139.887 billion Hong Kong dollars.
He Xiaopeng, chairman and CEO of Xiaopeng Motors, posted a photo with Ralf Brandstaetter, chairman and CEO of Volkswagen Group (China).
He Xiaopeng also said: "This photo has been taken for a long time, and it has not been released. Today's official announcement, thanks to Ralf and all friends in the public for their trust. When it comes to hard work is the most basic quality, I look forward to the big and small. Good technology, the best products, and the best brands are brought to the world."
He Xiaopeng also said, "Since the establishment of Xiaopeng Motors, we have always adhered to the internal full-stack self-developed electric vehicle platform, smart cockpit and advanced driver assistance system software. We are very happy to have the opportunity to contribute our technical expertise to the strategic cooperation between the two parties. , and at the same time create value for Xiaopeng Motors and shareholders.”
Ralf Brandstaetter also announced that the Volkswagen brand and Xpeng Motors, and the Audi brand and SAIC Motor have reached strategic cooperation respectively.
Bai Ruide said that this is another milestone in the Volkswagen Group's "in China, for China" promotion of electrification strategy. With the help of the new cooperation, Volkswagen Group will accelerate the process of launching new intelligent connected electric vehicles for customers again, and rapidly expand to new user groups and market segments.
"The penetration rate of new energy vehicles in the Chinese market has exceeded 30%, and this figure is expected to reach 50% by 2025. Volkswagen Group must quickly seize the huge potential of market growth and meet Chinese users' expectations for high-quality products!"
Baird also disclosed the action plan of the Volkswagen Group:
• Continue to accelerate electrification transformation. In the two cooperations, the Volkswagen brand and the Audi brand will jointly develop new electric models with various partners, enrich the existing product matrix, and meet customer needs in new market segments. The Volkswagen brand will develop two new electric models for the mid-size car market; the Audi brand will open up a new high-end market segment with new electric models. Crucially: the new models will not replace existing models of either brand.
• Strengthen the “In China, For China” strategy. This cooperation will take broader strategic measures to promote Volkswagen Group's deep participation in China's local technology ecosystem, so that Volkswagen can meet the differentiated needs of Chinese customers more quickly. Volkswagen not only strengthens its R&D capabilities through CARIAD and Volkswagen (China) Technology Co., Ltd. (VCTC), but also establishes partnerships with local technology companies such as Horizon, Zhongke Thundersoft and Guoxuan Hi-Tech. Reaching a new cooperative relationship with Xiaopeng Motors and SAIC Motor to jointly develop the next generation of intelligent connected vehicles in China is naturally a matter of course.
• Optimize economic efficiency. Through joint development, the economies of scale that can be achieved in procurement and other areas, as well as a high degree of localization, will help improve the cost structure and enhance the competitiveness and profitability of all partners.
Bai Ruide said that thanks to these long-term and stable strategic partnerships, Volkswagen's products and services are continuously expanding their market coverage and injecting more momentum into strategic transformation. As a result, Volkswagen will continue to play a leading role in the market in the new era of intelligent connected vehicles in China.
"Personally, I am also very happy to be able to promote this cooperation with Xpeng Motors. In the past few months, I have had a high degree of mutual trust with Chairman He Xiaopeng and the Xpeng Motors team. We are sure of each other that the Volkswagen Group He and Xiaopeng Motors share the same values and vision for future mobility. Chairman He Xiaopeng told me that he is very much looking forward to cooperating with Volkswagen Group. Volkswagen Group is one of the international automakers with the deepest understanding of the Chinese market and culture. This The evaluation makes me and our team very proud. The struggle is endless, let us act together."
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