On Thursday evening, SAIC Motor announced on its official public account that the company has signed a memorandum of understanding with Audi to accelerate the development of SAIC Motor's new electric vehicle models. In this "official announcement," SAIC Motor also stated that both parties will quickly and efficiently launch the "next generation of electric vehicle models." On Wednesday, Volkswagen Group announced that it will cooperate with Xiaopeng Motors through the Volkswagen brand and signed a long-term cooperation technology framework agreement. As part of the long-term strategic cooperation, the Volkswagen Group will increase its capital investment in Xiaopeng Motors by approximately $700 million, purchasing approximately 4.99% of the shares at a price of $15 per American Depositary Share. The Volkswagen Group will also become Xiaopeng Motors' third-largest shareholder, following He Xiaopeng and Alibaba.
On Thursday evening, July 27th, Beijing time, SAIC Motor officially announced on its official WeChat account that it has signed a memorandum of understanding with Audi to accelerate the development of new electric vehicle models. In this announcement, SAIC Motor also stated that both parties will rapidly and efficiently launch the "next generation of electric vehicle models."
SAIC Motor also expressed that based on the mutually beneficial cooperation established over the long term, as well as their respective strong innovative technological capabilities, SAIC Motor and Audi will actively expand the depth and breadth of their cooperation, leverage synergies, and quickly and efficiently launch the next generation of electric vehicle models to enter new niche markets.
SAIC Motor and Audi have a long history of cooperation, and rumors about their collaboration on electric vehicles have been circulating for some time.
In early July, it was widely reported that Audi was seeking authorization from Chinese automakers to purchase electric vehicle platforms in order to accelerate its model development. BYD, Geely, and SAIC Motor were all rumored to be potential partners. Audi's ambiguous response to these rumors sparked curiosity in the market, as people wondered which Chinese automaker the former "king of luxury cars in China" would join forces with to launch its comeback.
Soon, the rumors were confirmed. At a technology sharing event on July 20th, SAIC Motor's Vice President and Chief Engineer, Zu Sijie, stated, "SAIC Motor and Audi have reached a consensus to accelerate the development of electric vehicles through cooperation. We all agree that the Chinese automotive market is undergoing an unprecedented transformation, so we will further deepen our strategic cooperation, open a new chapter of collaboration, and provide guarantees for mutual success."
Insiders close to SAIC Motor revealed that the cooperation between SAIC Motor and Audi will be diversified, with different forms of collaboration such as technology licensing and joint development in each project. Those familiar with Audi disclosed that Audi hopes to have more collaboration with SAIC Motor in areas such as intelligent driving solutions and electric platforms, while maintaining its own style in terms of design.
What impresses the industry is that Chinese automakers, who were once apprentices in the era of internal combustion engines, have undergone a transformation in the era of new energy vehicles. Whether it was the establishment of a joint venture between Toyota and BYD to jointly develop pure electric passenger cars and battery packs, or Audi's current collaboration with SAIC Motor to develop electric vehicle models, new energy has already disrupted the traditional automotive industry.
The collaboration between SAIC Motor and Audi is not the only major event in the Chinese automotive industry this week.
On Wednesday, the Volkswagen Group announced that it will cooperate with Xiaopeng Motors through its Volkswagen brand and signed a long-term cooperation technology framework agreement.
As part of this long-term strategic cooperation, the Volkswagen Group will invest approximately $700 million in Xiaopeng Motors, acquiring approximately 4.99% of its shares at a price of $15 per American Depositary Receipt. After the transaction is completed, the Volkswagen Group will obtain an observer seat on Xiaopeng Motors' board of directors. Volkswagen Group will also rank behind He Xiaopeng and Baba, becoming the third largest shareholder of Xiaopeng Motors.
According to the technical framework agreement reached by both parties, in the initial stage of cooperation, both parties will jointly develop two Volkswagen brand electric vehicle models for the Chinese mid-size car market, with plans to launch them in 2026.
It is reported that the newly established Volkswagen (China) Technology Co., Ltd. (VCTC) is responsible for the development of new Volkswagen brand models and will become Xiaopeng Motors' partner in the development field.
On Wednesday, July 26th, Bernd Osterloh, Chairman and CEO of Volkswagen Group (China), announced on Weibo that in the strategic cooperation agreements reached between Volkswagen and Xiaopeng Motors, as well as Audi and SAIC Motor, the Volkswagen and Audi brands will jointly develop new electric vehicle models with their respective partners to meet the needs of new segmented markets. The Volkswagen brand will develop two new electric vehicle models for the mid-size car market, while the Audi brand will focus on the high-end segmented market. The new models will not replace the existing models of the two brands.
