VW is facing a major upheaval!
The German carmaker’s software has proven difficult to sell in China. But instead of being discouraged, VW is planning a radical step. The “Handelsblatt” newspaper previously reported on this.
VW: New operating system for the ID models
A new operating system for the ID models is to be introduced in China from 2026. This is made possible by a cooperation with the Chinese partner Xpeng. This cooperation could not only revolutionize the Chinese market, but also have an impact on other regions.
The partnership is a crucial step in the DAX group’s software strategy. The two car manufacturers want to work together to develop a new electronic architecture by 2026. This is intended to replace the current operating systems of all Volkswagen electric cars in China.
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VW is hoping that the new electronics architecture will not only strengthen its competitiveness in China. The China board member responsible, Ralf Brandstätter, explained that VW wants to use the Xpeng cooperation to reduce its development time by a third and its costs by up to 40 percent. The new software will also be used in joint vehicles from VW and Xpeng, which are scheduled to be launched on the market in 2026.
VW: Collaboration as the key to success
As the “Handelsblatt” learned from company circles, the approach in a similar form with other partners could serve as a model for other group brands. The Xpeng deal is a blueprint for the group’s entire software strategy,” said a high-ranking manager. This suggests that VW is also aiming for similar partnerships in other regions.
In order to keep pace and not lose touch with the competition, CEO Oliver Blume is increasingly relying on cooperation. Unlike his predecessor Herbert Diess, who relied more on in-house developments, Blume sees strategic partnerships as the key to success. In China, VW is working with Xpeng, Horizon Robotics in the field of automated driving and Thundersoft in the field of infotainment.
VW: New partnerships in the West
VW is also focusing on cooperation in the western hemisphere. The company recently announced the establishment of a five billion dollar joint venture with the US electric pickup manufacturer Rivian. The aim of the cooperation is also to develop a common electronic architecture. This should not only improve the vehicles from Rivian and VW, but also set new standards in the industry.
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This cooperation strategy could be the decisive factor for VW to survive in global competition. The electronic architecture developed in China together with Xpeng could serve as a model for other markets. This would enable VW to increase its innovative strength and efficiency worldwide.
Challenges and opportunities
The decision to develop new software in China is no coincidence. The Chinese market is highly competitive and the demands on technology and innovation are high. In Xpeng, VW has found a partner who not only knows the local market conditions, but also has the necessary technical know-how. The challenges for VW are diverse. It is not just about replacing the existing software, but also about integrating the new systems seamlessly into the existing production processes. The collaboration with Xpeng plays a central role in this.
Future prospects for VW
The cooperation between VW and Xpeng could serve as a model for other companies in the automotive industry. If the new electronic architecture can be successfully implemented and efficiency increased, this could have far-reaching effects on the industry. Other companies could follow this example and also rely on strategic partnerships to increase their innovative power.
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The next few years will show whether VW will be successful with its new strategy.
