Gasgoo Munich- On May 15, Gasgoo learned that XPENG Chairman and CEO He Xiaopeng discussed the history of the company's partnership with Volkswagen Group. He said he learned rigor and automotive philosophy from the German giant, while revealing a little-known detail before the investment.
"Before investing in XPENG, Volkswagen bought one of our cars and drove it for about 500,000 kilometers," He Xiaopeng said. "Then they dismantled it, looked closely, and only then came to talk to me — to see if I was up to the task and how exactly we build cars."
He Xiaopeng joked, "I have done a lot of due diligence in the past, but no one has ever done this. This was indeed thorough." The remarks quickly drew industry attention, widely seen as proof of Volkswagen's extreme caution when selecting technology partners.
Image Source: XPENG
Gasgoo previously reported, citing the Financial Times, that XPENG is discussing acquiring a factory in Europe with Volkswagen and other automakers.
Previously, Volkswagen Group CEO Oliver Blume stated the company might introduce models developed in China to Europe — potentially even sharing factory capacity on the continent with Chinese partners.
Amid cost-cutting and a contraction of its German operations, Volkswagen is currently exploring alternative uses for its plants in Dresden and Osnabrück.
However, Volkswagen Brand CEO Thomas Schäfer said at the "Future of the Car Summit" that no automaker has stepped forward to take over the German sites slated for closure. He dismissed the reports as "pure nonsense."
XPENG's Managing Director for Northeast Europe, Elvis Cheng, told the same event that the company is discussing with Volkswagen to determine "whether it is possible to find a suitable factory location in Europe."
Volkswagen currently holds about 5% of XPENG and operates three joint ventures in China — with SAIC Motor, FAW Group, and JAC. None of these partners currently have manufacturing facilities in Europe.
Reports also suggest XPENG is considering building a new plant in Europe from scratch. "We do not believe all existing factories can meet the requirements for our latest or future products," Cheng told the . He added that some of Volkswagen's facilities are "a bit older."
XPENG declined to comment on the above reports.
