⚡ VW is becoming the metal bender they always feared becoming. And it starts with this 5% investment into Chinese car startup XPENG.
The deal covers that
- XPENG and VW build 2 electric vehicles together
- VW licenses its brand to XPENG
- XPENG builds the software
- VW provides buying power to allow for more cost efficient production
- Design, development and manufacturing will happen in China
Oops, not much value creation left in Europe. And an announcement with a bang: yes, we at VW in Europe can't build EVs cost-efficient, with software that works and in a way that the customers want the car.
On a positive note: this might just be the one and only way how VW can work their way out of the European politics, "Betriebsrat" and software incompetence cluster fuck.
In innovation, we call that "innovation by speedboat".
This is that but taken to the extremes.
Good luck, VW. Hope you make it.