===Volkswagen AG (VWAGY) confirms $700 mln stake in XPeng (XPEV)

 

Volkswagen AG confirms $700 mln stake in XPeng (XPEV), at $15/ADS; outlines cooperation agreement for Chinese market 

• "The Volkswagen Group is strengthening its position on the Chinese automotive market with cooperations between the VW brand and XPENG (XPEV) and between Audi and SAIC. The Group is thus forging ahead with its local electrification strategy. The aim is to swiftly tap into new customer and market segments, thereby systematically leveraging the potential of China's dynamically growing e-mobility market.
• The VW brand has concluded a technological framework agreement with XPENG. The initial stage of the cooperation shall provide for the joint development of two VW brand electric models for the mid-size segment in the Chinese market. The China-specific vehicles will supplement the MEB product portfolio and are to be rolled out in 2026 in China. This is subject to the conclusion of final agreements.
• As part of the close and long-term strategic cooperation, the Volkswagen Group is to invest approximately US$700 million in the Chinese manufacturer of intelligent electric cars. Volkswagen is thus acquiring 4.99 percent stake in XPENG at US$15 per ADS (*) by way of a capital increase, and will hold a seat as an observer on the XPENG board of directors. The share issuance will be subject to customary closing conditions including applicable regulatory approvals."