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Volkswagen considers using Chinese software for Europe, report says

Reuters

BERLIN, Oct 26 (Reuters) - Volkswagen ‌could roll out the software currently used in its cars for the Chinese ​market ‌to its mass-market offering in Europe, according ‌to a media report on Monday, in a move that threatens to sideline its US ‌partner Rivian.

Volkswagen's 'China Electronic Architecture', a system developed for Chinese models in cooperation with local EV maker Xpeng, could form the basis for future cars from ⁠the group's core VW, Skoda and Cupra ‌brands, Manager Magazin reported ⁠citing sources.

Core brand chief Thomas Schaefer is expected to ​present the proposal to management on Tuesday, the report said. It would cover around ​three quarters of next-generation models from the ​three ‌brands, which are ramping up their EV offering ​in Europe.

Volkswagen declined to comment on the ⁠report.

The company has so far ‌kept software separate, ​using the architecture co-developed ​with Xpeng for the Chinese market while developing a separate technology for the Western world with Rivian, in a $5.8 billion investment at the ‌heart of CEO Oliver Blume's software strategy.

Volkswagen has struggled to keep pace on software. The ‌group's complex ​model offering, from mass-market brands to high-end marques like Audi and Porsche, has posed difficulties to scaling, including at in-house unit Cariad.

(Reporting by Rachel ‌More and Christina AmannEditing by Linda Pasquini)