Thomas Schäfer wants Xpeng software in most VW, Škoda, Cupra EVs
Volkswagen brand chief Thomas Schäfer wants to deploy software from Chinese automaker Xpeng in roughly three quarters of electric vehicles across the VW, Škoda, and Cupra brands, cutting costs by replacing technology initially slated from Rivian, according to a report by Manager Magazin.
High-Volume Electric Rollout Across Core Brands
The proposed electrical architecture rollout affects upcoming high-volume electric vehicles, including the ID. Golf, ID. Passat, ID. Tiguan, and the Škoda Enyaq. The underlying software system originates from a joint development between Volkswagen and Xpeng. It was refined further by Volkswagen’s dedicated software subsidiary, Cariad, alongside the automaker’s VCTC development center in China.
Internal Math Reveals Massive Cost Deficits
Internal calculations cited by Manager Magazin indicate substantial savings behind the strategic pivot. Developing and manufacturing an electric Tiguan in Europe could run roughly 8,000 euros higher per vehicle using alternative setups. Development hours at the joint venture with American firm Rivian cost approximately four times more than comparable hours logged within the Chinese engineering hub.
VW brand chief Thomas Schäfer wants the electronics VW developed with XPeng for China in its European cars, a report says. He'll present the plan on Tuesday.$XPEVWhy XPeng could gain 👇https://t.co/q15keo58KJ
Challenging the Geographic Divide
Current corporate planning dictates that Chinese technology remain restricted primarily to the Chinese market and select export regions, while Rivian delivers vehicle software designed for Europe and North America. Schäfer’s proposal directly challenges that geographic division. However, the shift would not automatically sever ties with the American partner entirely.
Audi and Porsche Keep US Technology Stack
Autonomous luxury and performance brands under the corporate umbrella maintain separate paths. Audi and Porsche will continue utilizing the US-developed technology stack. Meanwhile, industry critics caution that adapting the China-developed architecture to meet strict European regulatory requirements poses distinct engineering hurdles.
A Final Decision Hangs in the Balance
Volkswagen has declined to comment on the Manager Magazin report, and a final decision regarding the enterprise-wide software switch has not yet been finalized. The debate highlights the intense financial pressures facing legacy European automakers as they attempt to streamline vehicle electronics, enable wireless over-the-air updates, and rein in soaring manufacturing costs.