Volkswagen to Take [5%/$700M] Stake in Chinese EV Maker Xpeng

[Hamartia Antidote]

Volkswagen to Take Stake in Chinese EV Maker Xpeng

By Will Feuer Volkswagen is taking a roughly 5% stake in Chinese electrical vehicle maker Xpeng as part of a broader collaboration through which the...

www.marketwatch.com

Volkswagen is taking a roughly 5% stake in Chinese electrical vehicle maker Xpeng as part of a broader collaboration through which the companies will jointly develop two B-class battery EVs for sale in China.

Xpeng will issue Class A ordinary shares in the company that equal about 4.99% of the company's outstanding share capital and sell them at a price of $15 per American depositary share to Volkswagen. The investment will total about $700 million, the companies said.

The battery EVs that the two companies plan to jointly develop will be sold in the Chinese market under the Volkswagen brand, the companies said. The models are expected to start production in 2026.

The companies said they will explore other opportunities for cooperation.

 

[Skull and Bones]

From Chinese sentiments few months ago, it seemed like XPeng would buy 5% stake in VW.

 

[MH.Yang]

From Chinese sentiments few months ago, it seemed like XPeng would buy 5% stake in VW.

Take a look at this. Volkswagen group chooses to use lithium battery technology of second tier brands in China(China's top tier brands are CATL and BYD.). It really surprises me. Is Volkswagen ready to produce cheap electric cars?

Gotion High-Tech intends to invest in a production base in Europe with an annual production capacity of 18GWh

/PRNewswire/ -- On 27 June, Gotion High-Tech held the 5th New Energy Economic Forum and the Opening Ceremony of Gotion Germany at its Göttingen base. It is...

www.prnewswire.com

I also found this. Volkswagen group used 5.2 billion CNY (780million US dollars) to acquire 1.05% of the shares of goion high-tech.

It's strange that goion high-tech is a state-owned enterprise in China. What's the use of 1.05% shares?
Most of its shares are still in the hands of China's state owned assets supervision and Administration Commission, Anhui provincial state owned assets operation company and Hefei municipal government.