German automaker Volkswagen has completed its financial investment in the Chinese electric car manufacturer Xpeng, as initially announced in July. The transaction involved Volkswagen acquiring 4.99% of Xpeng's shares for approximately $705.6 million, granting the German company a non-voting observer seat on Xpeng's board. The purchase price, equivalent to 654.5 million euros, slightly exceeded the initially mentioned figure of “around 700 million dollars.”
Following the transaction's closure, Volkswagen now holds just over 94 million Class A ordinary shares in Xpeng. The identities of individuals Volkswagen may appoint to Xpeng's management and supervisory board remain undisclosed. However, it was previously established that Volkswagen would assume the role of a non-voting “observer” on Xpeng's Board of Directors.
Xpeng has reported significant progress in its technical collaboration with Volkswagen for the development of two Battery Electric Vehicle (BEV) models. The feasibility study for the project has been successfully completed, marking a positive outcome. Both companies are actively exploring deeper strategic cooperation in smart EV technologies.
The jointly developed electric mid-range models, expected to debut under the Volkswagen brand in 2026, will complement the Modular Electric Drive Kit (MEB) product portfolio as China-specific vehicles. These models are positioned in the upper B segment and will utilize the Xpeng G9 platform, as outlined by VW CEO Oliver Blume in a conference call at the end of July. Blume emphasized that the collaboration, initially confined to China, may potentially expand to other markets, leaving the door open for broader cooperation.