Key facts
- Volkswagen may use its China-market software for European models, a report said.
- The software was developed with Chinese EV maker Xpeng.
- The move could affect Volkswagen's $5.8 billion software investment with US partner Rivian.
- The proposal is expected to be presented to management on Tuesday.
Volkswagen could potentially deploy the software currently used in its Chinese market vehicles for its mass-market offerings in Europe, according to a media report on Monday. This strategic shift, if implemented, could impact its existing software development partnership with US-based Rivian. The 'China Electronic Architecture,' developed in cooperation with Chinese EV maker Xpeng, might serve as the foundation for future cars from Volkswagen's core VW, Skoda, and Cupra brands. The report indicates that core brand chief Thomas Schaefer is slated to present this proposal to management on Tuesday, potentially affecting approximately three-quarters of the next-generation models for these brands as they expand their electric vehicle presence in Europe. Volkswagen has previously maintained separate software development paths, utilizing the Xpeng-co-developed architecture for China while pursuing a distinct technology for Western markets with Rivian, a collaboration representing a significant $5.8 billion investment central to CEO Oliver Blume's software strategy. The company has faced challenges in software development, partly due to its complex model range and difficulties in scaling at its in-house unit, Cariad.