According to a report by the German magazine 'Manager' on October 26th, Volkswagen may extend the automotive software it currently uses in the Chinese market to its products in Europe.
Reuters also reported this news, stating that this move could marginalize Rivian, a major American partner of Riot.
According to sources cited by the magazine 'Manager', Thomas Scherer, head of the Volkswagen brand, plans to implement a radical strategic shift: in about three-quarters of the electric vehicle models of the future core brand, automotive software will no longer rely on Rivian's American architecture, but will instead use Chinese technology.
Volkswagen's "Chinese Electronic Architecture" is a system developed in collaboration with Chinese local electric vehicle manufacturer Xpeng Motors, specifically designed for Chinese models. In the future, this architecture may also serve as the technical foundation for the future models of Volkswagen, Skoda, and Cupra, the core brands under the group.
Reports indicate that Thomas Scheffer is expected to submit the proposal to the management on Tuesday this week.
Volkswagen refused to comment on that report.
According to reports, Volkswagen has always separated software development from the Chinese market, using an architecture jointly developed with Xpeng Motors for the Chinese market. At the same time, it collaborates with Rivian to develop independent technologies for the Western world.
Volkswagen has always struggled to keep up in terms of software. The group's complex product line, from Volkswagen market brands to high-end brands like Audi and Porsche, has posed difficulties for scale development.
German experts analyze that why Volkswagen has suddenly turned to Chinese automotive software. The answer is simple: cost differences. Volkswagen's timeline and budget have become out of control, and switching to the Chinese architecture is expected to save 40 to 50 billion euros in development costs.
Additionally, from a technical perspective, this transformation is not abrupt, but rather a natural response to the successful practices in the Chinese market.
Experts mentioned that earlier this year, the electric SUV Volkswagen ID.Aura T6 equipped with Xpeng technology demonstrated a flawless delivery process. While there were ongoing disputes over responsibilities within Lower Saxony, developers in Hefei, Anhui, managed to complete the construction of a functional system architecture in a very short time.
