Chinese electric vehicle maker Xpeng (NYSE:) said Monday it has set up project houses for engineers in partnership with German automaker Volkswagen AG (OTC:) to accelerate the development of new electric vehicle architecture.
The new facilities, to be built in the Chinese cities of Guangzhou and Hefei, will serve as warehouses for engineers from both sides to work together.
The repositories are intended to help the parties begin producing a jointly developed architecture — the configuration of electronic components, modules and networking within a vehicle — two years from now.
“From 2026, all Volkswagen (ETR:) brand electric vehicles in China will be equipped with this powerful and highly efficient architecture,” said Ralf Brandstätter, Member of the Board of Management of Volkswagen AG in China.
The facilities are part of an agreement between the two parties, where Volkswagen plans to use its new smart and electric vehicle architecture to make more affordable electric cars in its biggest markets.
Xpeng and Volkswagen struck a partnership last year, when Volkswagen bought a 4.99% stake in Xpeng for about $700 million with plans to launch two Volkswagen-branded electric vehicle models by 2026.