Hyperdrive
Volkswagen Takes $700 Million Xpeng Stake for EV Pact to Win Back China
- Carmaker to develop new EVs with Xpeng, SAIC in sales push
- BYD, Tesla are dominating sales in biggest auto market
Volkswagen AG plans to invest $700 million in Xpeng Inc. and jointly develop electric vehicles in China as the German automaker fights to halt a sales slide in its most important market.
VW will eventually hold a 4.99% stake in the Chinese company via a capital increase and is getting an observer board seat, it said Wednesday. Its Audi premium brand will deepen ties with VW’s long-term partner SAIC Motor Corp Ltd. to also bolster its EV lineup.