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[BUSINESS] · China, Brazil, United States · 14 sources

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Volkswagen pivots to China-developed technology for global markets

Volkswagen is restructuring its global strategy by leveraging technologies and vehicles developed in China to increase competitiveness in emerging markets. The automaker aims to export at least 300,000 vehicles annually from China by 2030, targeting regions including South America, Asia, and the Middle East.

Central to this shift is the use of the China Electronic Architecture (CEA) and the Compact Main Platform (CMP). These technologies, developed at Volkswagen’s major R&D center in Hefei in collaboration with local partners like XPeng and Horizon Robotics, are intended to reduce costs and accelerate development. In South America, these architectures are expected to debut in new models by the end of the decade.

Additionally, Volkswagen has commenced road testing for Level 3 autonomous driving technology in Hefei. This system, developed through the CARIZON joint venture between CARIAD and Horizon Robotics, aims for operational readiness by 2027. While the company maintains a multi-billion dollar software partnership with Rivian, internal discussions suggest that utilizing China-developed software could offer significant cost savings for next-generation models.

Entities

CARIAD · CARIZON · Hefei · Horizon Robotics · Rivian · Volkswagen · Volkswagen Group China · XPeng

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