XPeng is another Chinese brand that will start its own production in Europe. According to the Financial Times, the company is already in talks with Volkswagen and other car groups to buy a plant in Europe.
XPeng’s Head of Northeast Europe, Elvis Cheng, confirmed that the company is looking for a suitable site. At the same time, he noted that some of Volkswagen’s plants are “a bit old”, which means that their adaptation to modern electric cars may not be as quick and cheap. Therefore, XPeng is also considering the possibility of building a new factory.
For Volkswagen, such a conversation is also not accidental. The German concern is going through a painful restructuring: cutting costs, reviewing factory workloads and looking for opportunities for unused capacity. The head of the group – Oliver Blume, previously admitted that Volkswagen is ready to discuss cooperation with Chinese manufacturers who need European sites.
There is already a relationship between the two companies. In 2023, Volkswagen will invest about $700 million in XPeng and receive approximately 5% of the shares. The partners have already started production of the first jointly developed car for China, a market where it is becoming increasingly difficult for the German concern to compete with local electric car brands.
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For Europe, a possible deal seems symbolic. Until recently, Chinese brands tried to prove that their electric cars were not inferior to European ones. Now they can start producing them in the factories themselves, which European concerns cannot burden with their own models.
XPeng needs speed, Volkswagen has excess power. If the deal goes through, it won’t just be a workshop purchase, but another sign: the center of gravity in the electric car industry has already shifted noticeably.
Source: Actualno
