VW and Xpeng expand cooperation once again – now into ICE territory

For over a year, Volkswagen and its Chinese partner Xpeng have been developing a joint E/E architecture, set to be integrated into the Wolfsburg-based carmaker’s EV platforms CMP and MEB. Now, both companies have decided to extend the partnership to include plug-in hybrids and internal combustion engine models.

However, these will be plug-in hybrid and combustion models sold exclusively in China. This comes from a statement issued by Xpeng on the matter. “This Expanded Technical Collaboration on E/E Architecture marks another milestone in the long-term strategic partnership between XPENG and Volkswagen Group, driving continuous strategic value creation for both parties,” the Chinese company states.

The two carmakers first entered into partnership in July 2023 and have been steadily deepening it since – for example, in February 2024 with a framework agreement on cooperation, and in April 2024 with the deal for the aforementioned E/E architecture, dubbed China Electronic Architecture or CEA. At the time, the plan was to integrate CEA into VW’s China-specific CMP platform, aimed more at the entry-level segment. Just a few months later, in July 2024, the collaboration was expanded for the first time, with the joint E/E architecture not only set to feature in the China CMP platform but also in all VW-branded models based on the global MEB platform for the Chinese market. Notably, this did not include the European MEB models.

In the latest statement, Xpeng – unsurprisingly – does not reveal any details about the combustion models from Volkswagen that will adopt the new E/E architecture. “Adhering to rigorous platform-oriented design philosophy, the joint R&D teams have designed and validated that the E/E Architecture developed for electric vehicle platforms can also be adapted to ICE and PHEV platforms,” it says in somewhat veiled language. “The Expanded Technical Collaboration will significantly expand the scale of vehicles equipped with this industry-leading E/E Architecture in China market, enabling the Volkswagen Group to realise significant platform-driven economies of scale and enhanced product competitiveness.”

The cooperation is also expected to help the VW Group accelerate its software-defined vehicle strategy and boost global competitiveness. The Wolfsburg company aims to roll out new software iterations and over-the-air updates more quickly, and thus “significantly shorten” development cycles. While such claims are often standard PR vocabulary, they also reflect the fact that VW has fallen behind with its previous, far more complex E/E architecture. Carsten Hoff from dSpace has explained in an interview with electrive what role E/E architectures will play in the electric cars of the future.

“This Expanded Technical Collaboration not only underscores the mutual trust in our long-term strategic partnership but also highlights our commitment to and vision for continuous innovation in smart electric vehicle technologies,” said He Xiaopeng, Chairman and CEO of Xpeng.

Volkswagen’s China chief Ralf Brandstätter added: “We do not confine technological excellence to a single powertrain type. Our brands are committed to delivering the most advanced solutions for customers in every segment. By extending the China Electronic Architecture to our robust combustion engine fleet, we are strengthening our technological leadership in the conventional powertrain sector. At the same time, we are systematically reducing our cost base, enabling us to continue offering highly attractive choices to customers in China’s intensely competitive automotive market.”

xiaopeng.com (PDF)

This article was first published by Sebastian Schaal for electrive’s German edition.