Volkswagen and Xpeng Motors have inked a deal to develop a high-performance electrical/digital structure that can underpin upcoming China-made, VW-branded fashions beginning 2026, the businesses stated on Wednesday. The settlement is an growth of a partnership that kicked off final yr with a concentrate on the event of two new VW fashions that includes Xpeng’s autonomous driving capabilities scheduled for launch in 2026 in China. The China Electrical Structure (CEA) set-up will function 30% fewer digital management items than Volkswagen’s earlier methods, permitting the German automaker to decrease the associated fee for its China-developed platform by 40% in comparison with its German-developed MEB platform. Volkswagen and Xpeng additionally stated in February that they’ll begin sourcing automobile elements collectively to scale back prices. Xpeng’s shares rose 3.8% as of Wednesday’s market shut. [Volkswagen announcement]