Volkswagen plans overseas rollout of car technology developed in China
South America is set to receive the first models by the end of the decade, while Europe and North America are excluded for now.
Volkswagen intends to expand the use of its China-developed vehicle technology beyond the Chinese market, with South America the first destination, Reuters reported. The move would end the company's practice of reserving that technology for vehicles sold within China.
New models for developing markets will use the Compact Main Platform and China Electronic Architecture, created with Chinese partners at Volkswagen's Hefei research center. The company also plans to increase shipments of Volkswagen and Jetta vehicles made in China to South America and Africa over the coming years. Southeast Asia remains a potential market.
Xpeng helped develop the electronic architecture, which supports multiple vehicle platforms and engine types. It is intended for vehicles that rely mainly on software to operate and update their features.
Volkswagen also presented a package called VEGA, scheduled for launch in 2027. It pairs 850-volt fast charging with readiness for Level 3 automated driving, which allows a vehicle to drive itself under certain conditions.
The company says its approach to vehicle development in China can shorten development time by up to 30%. It wants the Chinese operation to provide a lower-cost base for design and exports as local competitors, including BYD and Geely, take market share. Reuters reported that Volkswagen's partnerships with Xpeng and Horizon Robotics have yet to deliver a commercial hit.
