The Volkswagen Group is strengthening its position on the Chinese automotive market with cooperations between the VW brand and XPENG 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.

Audi has signed a strategic memorandum with its Chinese joint venture partner SAIC to further expand existing cooperation. Joint development activities are to extend the portfolio of fully connected electric vehicles on offer in the premium segment swiftly and efficiently. It is planned to start with electric models in a segment where Audi does not as yet have a presence in China.

The jointly developed e-models are to be equipped with state-of-the-art software and hardware, in order to offer Chinese customers an intuitive, connected digital experience. All parties are contributing their respective core competences to the development effort.

Both agreements also envisage a planned, future joint development of new local platforms for the next generation of intelligent, fully connected vehicles (ICV). The partnerships aim to swiftly expand the Group’s product range with further models from China for China in particularly promising customer and market segments. The details of cooperation on future e-platforms are the subject of further negotiations between the partners.

Ralf Brandstätter, Volkswagen AG Board Member for China, commented: "Local partnerships are an important building block in the Volkswagen Group's 'in China for China' strategy. We are now accelerating the expansion of our local electric portfolio and at the same time preparing for the next innovation step. With XPENG, we now have another strong partner that is one of the leading manufacturers in China in key technology areas.In a competitive and dynamic market environment, we are leveraging the strengths of Volkswagen and our partners to create synergies to bring additional products to market faster. In doing so, we focus on the specific needs of our customers in China. At the same time, we want to significantly optimize development and procurement costs.”

Volkswagen Group (China) Technology Company assumes development responsibility for new Volkswagen models

The recently founded Volkswagen Group China Technology Company (VCTC) is the development partner for XPENG. The new development, innovation and procurement center is the Group’s largest development location outside Wolfsburg. Going forward, this is where over 2,000 development and procurement experts will work on new intelligent, fully connected electric vehicles.

Optimizing development and procurement volumes generates significant synergy potential with cost advantages compared with current vehicle projects.

Partnerships are next important step in the Group’s “in China for China” strategy

The cooperations tie in with the Group’s “in China for China” strategy to address market-defining trends in China at an early stage and leverage the growth dynamics and innovative strength of the Chinese market more effectively. In order to speed up decision-making and development processes in the region, Volkswagen is strengthening its local capacities for e-mobility as well as digitalization and autonomous driving.

To this end, Volkswagen is expanding its Hefei plant in east China’s Anhui Province into a state-of-the-art production, development and innovation hub. Production at Volkswagen Anhui’s new vehicle plant will commence this year. VW Anhui Component Company is building a manufacturing facility for high-voltage battery systems in Hefei. Furthermore, Volkswagen Group China Technology Company is setting up a development and procurement center for fully connected, intelligent electric vehicles in Hefei.

At the same time, the Volkswagen Group is also focusing on partnerships with local high-tech companies. For Volkswagen Group China, high technology localization and systematic customer orientation are the key to playing a leading role in the new era of intelligent connected vehicles (ICV).

(*) ADS = American Depositary Share, 1 ADS represents 2 Class A Shares


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The Volkswagen Group is pleased to support the concert series “Sound in the Garden”. All of the upcoming events, can be experienced in the Sculpture Garden of the Neue Nationalgalerie in Berlin. Set to run until September 2023, the series encompasses four free concerts which extend the Volkswagen Group ART4ALL visitor program that regularly grants free access to exhibitions at Neue Nationalgalerie.


Yesterday, German-Iranian musician performed the first concert and presented her music which is influenced by indie pop elements.

“Sound in the Garden“ is being realized as part of the Volkswagen Group ART4ALL visitor program. Jointly developed by Volkswagen and Nationalgalerie – Staatliche Museen zu Berlin, it opens the world of culture and the arts to a large audience. Every Thursday between 4 and 8 p.m., visitors benefit from free access to Neue Nationalgalerie’s exhibitions and collections.

This year’s edition of „Sound in the Garden” marks the second return of this concert series. In 2022, museum director Klaus Biesenbach initiated the launch of the live program, echoing the “Jazz in the Garden” concerts which Neue Nationalgalerie had realized in the 1970s and 1980s to invite guests to a new kind of cultural experience at the museum’s Sculpture Garden. The current program is assisted by Volkswagen Group Fellow Jorgina Stamogianni.

Klaus Biesenbach, Director of the Neue Nationalgalerie in Berlin: “With ‘Summer in the Garden’, I would like to continue an inspiring concert culture in the sculpture gardens of the Neue Nationalgalerie Berlin and the Museum of Modern Art. The wonderful atmosphere at the opening event last night affirmed our purpose. With Volkswagen as a partner on our side, we are able to offer free admission to this programme as well, entirely in line with the motto ‘Culture for All’.”

Benita von Maltzahn, Director Global Cultural Engagement at Volkswagen Group: “The Berlin home of Neue Nationalgalerie is nothing less than a unique museum location. And since its reopening, it has become even more fascinating to explore the architecture and exhibitions. Our partnership with Nationalgalerie – Staatliche Museen zu Berlin is led by the commitment to enable the widest possible audience to engage with culture and the arts. Supporting the concerts in the Sculpture Garden givesguests the possibility to enjoymusic and a visit of the museum for free as part of the Volkswagen Group ART4ALL program, so that even more people shall feel welcome to experience modern art along with new sounds.”

The Volkswagen Group maintains a long-standing partnership with Nationalgalerie – Staatliche Museen zu Berlin. It underlines the corporate commitment to act as trusted partner of projects and institutions in the sphere of culture, the arts and cultural education. In this role, Volkswagen helps its partners to reach a large audience with creative works while also securing visibility for ideas and perspective of a wide range of artists. Bringing together art and people drives a far-reaching and open-minded exchange of views which is a fundamental quality for receptive debates and mutual understanding in our society.


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Today, the Volkswagen Group and its Elli brand became the first automotive company to start trading on the German electricity market of Europe's largest power exchange, EPEX Spot. The basis for electricity trading is a stationary storage system made of e-up! batteries and a new, digital electricity trading platform from Elli. In the future, the stationary storage system – the so-called "PowerCenter" – will store the energy traded on the electricity market. The pilot project is being driven forward jointly by Elli and Volkswagen After Sales and is a first step on the way to the planned Smart Energy Platform. In the future, Volkswagen and Elli want to anchor the growing storage capacities of electric cars and batteries in the energy system and make an important contribution to the energy transition.


"Elli will significantly advance electric mobility and the energy transition," says Elli CEO Giovanni Palazzo. "We are already Europe's largest mobility service provider in the field of charging and energy. We want to further expand this leading position and develop Elli into a leading trading company for battery flexibility. Electricity trading is a major milestone on this path. Our long-term goal is clear: We want to give our customers a clear advantage in terms of electricity prices and at the same time develop new, high-revenue business models that will strengthen Elli in the long term," added.

Kora Töpfer, Head of German Public & Regulatory Affairs at the European Power Exchange EPEX Spot, adds: "We are pleased to welcome the Volkswagen Group and Elli as the first automotive company to trade with us on the German electricity market. Our continuously growing electricity exchange needs companies that want to get involved in trading and control the growth of renewable energies with us in order to compensate for fluctuating demand and energy supply. With Elli, our broad and diverse trading community is expanded by another significant member, for the benefit of the entire market and all trading participants. After all, more activity also means more trading opportunities for all market participants."

This is how Elli electricity trading works: The focus is on an intelligent platform for trading, controlling and optimizing batteries. Bids can be automatically placed on the stock exchange via the platform. The trading results are translated into a timetable and the battery is automatically charged or discharged. Electricity is purchased during periods of low prices (with a tendency towards a high share of renewables) and sold during periods of high prices (with a tendency towards a low share of renewables). As a result, not only can trading revenues be generated, but a better use of renewable energies can also be achieved. The stationary battery storage uses 28 battery systems and 34 e-up! cell modules.

In this pilot project, Elli is gaining valuable experience for the development of a smart energy platform, which can later be used for larger and more complex applications. For example, Elli is currently investigating the possibilities and scalability of large-scale storage systems together with the battery company PowerCo. In the future, the growing e-car fleet can also be integrated into the energy grid via Vehicle-2-Home and Vehicle-2-Grid and serve as a mobile power bank. Thanks to intelligent charging tariffs and algorithms, Elli is already making it possible to charge the car exactly when there is a lot of renewable energy available at low cost.

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The Volkswagen Group increased its deliveries of all-electric vehicles (BEVs) by 48 percent year-on-year to 321,600 vehicles in the first half of the year. The BEV share of total deliveries rose to 7.4 percent, up from 5.6 percent in the first six months of the previous year. The Group achieved the highest growth in Europe, where deliveries rose by 68 percent to 217,100 BEVs. Here, the Volkswagen Group is the market leader and gained market share. Significantly more customers of a Group brand took delivery of their all-electric vehicles in the USA, too. The increase here was 76 percent to 29,800 vehicles. In China, deliveries were around two percent below the previous year's level at 62,400 BEVs in a particularly competitive market environment. Recently, however, the trend here has also been positive. Following a lower first quarter, 18 percent more BEVs were handed over to customers in the world's largest automotive market in the second quarter than in the prior-year period. Worldwide, the increase in the second quarter was 53 percent to 180,600 vehicles (118,000), and the BEV share of total deliveries rose to 7.7 percent (6.0) in this period.

Around 68 percent of the Group's BEV deliveries were in its home region of Europe, followed by China with 19 percent and the USA with nine percent. Four percent went to other markets.

The Volkswagen Passenger Cars brand delivered 164,800 vehicles by the end of June, slightly more than half of all BEVs in the Group. It was followed by Audi with 75,600 vehicles (group share 24 percent), ŠKODA with 31,300 vehicles (group share 10 percent), SEAT/CUPRA with 18,900 vehicles (group share 6 percent), Porsche with 18,000 vehicles (group share 6 percent) and Volkswagen Commercial Vehicles with 12,300 vehicles (group share 4 percent).

The most successful BEV models in the first half of 2023 were:

    • Volkswagen ID.4/ID.5 101,200
    • Volkswagen ID.3 49,800
    • Audi Q4 e-tron (incl. Sportback) 48,000
    • ŠKODA Enyaq iV (incl. Coupé) 31,300
    • Audi Q8 e-tron (incl. Sportback) 19,500
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The all-new Passat Variant will celebrate its world premiere at the end of August and Volkswagen is now publishing the first advance details of the next Passat generation. The new model is equipped with a host of innovations such as an intuitive display and operating concept, a high-quality interior, a new adaptive chassis control system, premium-class seats and plug-in hybrid drives with electric ranges of up to 100 kilometres. The all-new Passat Variant will be launched in the first quarter of 2024. It is the ninth generation of one of the world’s most successful mid-sized cars, with over 50 years of history and more than 30 million units sold.


When designing the all-new Passat Variant, Volkswagen fully exploited the potential of the modular transverse matrix in its new development stage – MQB evo for short. Kai Grünitz, Member of the Brand Board of Management responsible for Development: “With the all-new Passat, we have placed great importance on high ride and travel comfort that customers will feel immediately. Among other things, this is ensured by the longer wheelbase and the new adaptive chassis control with two-valve shock absorbers. At the same time, our new display and operating concept is very intuitive. Climate-controlled massage seats illustrate our premium standard in the interior.”


Interior architecture has been redesigned based on a new concept. Thanks to high-grade materials and effective noise insulation, the overall quality and comfort are taken to a new level. ergoActive front seats will be available as an option. These feature electrical adjustment (up to 14-way, depending on model and equipment) as well as differently configured massage and air conditioning functions.

New display and operating concept. The new interior architecture of the Passat Variant systematically implements feedback from Volkswagen customers with the goal of making operation as intuitive as possible. The Passat Variant will therefore be launched with a newly developed cockpit and new infotainment system. The new standard infotainment display measures 32 cm (12.9 inches). There will also be a new 38 cm (15-inch) display as an option or depending on equipment. Backlit touch sliders are located underneath the infotainment system display and are used to adjust functions such as the interior temperature and volume. Volkswagen will also optionally offer a new head-up display that projects the information onto the windscreen and thus into the virtual space in front of the vehicle. In addition, the multifunction steering wheel has buttons again – to make operation even easier.

More space in the rear. The all-new Passat Variant is much larger than its predecessor. The new length (14 centimetres more) increases legroom by another 5 centimetres. The luggage compartment capacity is also increased by 40 litres to 690 litres (when loaded up to the height of the rear seat backrests), and even by 140 litres to 1920 litres when the rear bench seat is folded down.


New DCC Pro and integration of the Vehicle Dynamics Manager. Numerous individual measures improve the running gear of the new model: increased camber stiffness and greater lateral force steering of the four-link rear axle (increased rear axle stability and thus increased driving safety), a new electromechanical steering setup, modified anti-roll bars and shock absorbers, and adaptations for different wheel rims. The more direct steering ratio and longer wheelbase of the Passat Variant have an additional positive effect on the driving characteristics.

Volkswagen also offers a further developed generation of the adaptive chassis control for its bestseller: the optional DCC Pro with two-valve shock absorbers. This system continuously reacts to the road surface and driving situation while taking into account parameters such as steering, braking and acceleration manoeuvres. The ideal damping is calculated for each wheel and adjusted at the shock absorbers in fractions of a second. The driver has the option of adjusting the DCC to suit individual preferences – from very comfortable to very sporty. In other words: more comfort and more dynamics.

A Vehicle Dynamics Manager is also part of the standard equipment – an MQB system that celebrated its debut in the current Golf GTI. The system controls the functions of the electronic differential locks (XDS) and the lateral dynamics components of the controlled shock absorbers in the DCC Pro system. Thanks to the Vehicle Dynamics Manager, handling is made more neutral, stable, agile and precise by wheel-specific brake interventions and wheel-selective adjustment of the shock absorber hardness.


For powerful illumination of the road. In its premium specification packages, the Passat Variant will be offered with a new generation of IQ.LIGHT LED matrix headlights. These powerful headlights are flatter than the previous version and have a new high-performance main beam with a range of around 500 metres. At the rear, the new model has a continuous horizontal LED strip for the tail light clusters.

TDI, TSI, eTSI and eHybrid. Thanks to MQB evo, different drive types are possible for the all-new Passat Variant. It will be offered with turbodiesel engines (TDI), turbocharged petrol engines (TSI), mild hybrid turbocharged petrol engines (eTSI) and plug-in hybrid systems (eHybrid). The electric range of the new plug-in hybrid drives has been increased to up to 100 kilometres compared with the predecessors, depending on equipment. In addition, AC charging will be faster in all eHybrid versions, and DC charging will also be possible as standard for the first time.


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