XPeng and Volkswagen in Talks Over Potential Acquisition of European Manufacturing Facility

Deep News

May 14

Chinese electric vehicle startup XPeng Inc. is reportedly in discussions with Volkswagen AG and other automakers regarding the potential acquisition of a factory in Europe.

This development follows recent comments from Volkswagen Group CEO Oliver Blume, who indicated the company might introduce vehicles developed in China to the European market and potentially share production capacity in Europe with Chinese partners.

Elvis Cheng, Head of Northern and Eastern Europe for XPeng, stated at the Financial Times' "Future of the Car" summit that the company is engaged in talks with Volkswagen to explore the possibility of securing a location in Europe.

Volkswagen holds a stake in XPeng and has three joint venture partners in China: SAIC Motor, FAW Group, and Jianghuai Automobile Group. However, none of these partners currently possess manufacturing capabilities in Europe.

The report also notes that XPeng is considering building a new factory in Europe. "We believe not all factories can meet the requirements of our latest or future products," Cheng told the Financial Times, adding that Volkswagen's existing facilities are "somewhat outdated."

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