Xpeng, Volkswagen set up project house to roll out new EV architecture

(Reuters) -Chinese electric vehicle (EV) maker Xpeng has established project houses for engineers in partnership with German automaker Volkswagen AG to accelerate the development process of new EV architecture, it said on Monday.

The new establishments, to be located in China's Guangzhou and Hefei, are warehouses for engineers from both parties to work together.

The warehouses are aimed at helping the parties begin production for jointly-developed architecture - configuration of electronic components, modules, and network within a vehicle - two years from now.

"From 2026, all electric vehicles of the Volkswagen brand in China will be equipped with this very powerful and efficient architecture," said Ralf Brandstätter, member of the board of management of Volkswagen AG for China.

The establishments are part of an agreement between the two parties, where Volkswagen plans to use its new architecture for intelligent and electric cars to make more affordable EVs in its biggest market.

Xpeng and Volkswagen forged a partnership last year, when Volkswagen bought 4.99% of Xpeng for around $700 million with plans to jointly launch two Volkswagen-branded EV models by 2026.

(Reporting by Ayushman Ojha; Editing by Sherry Jacob-Phillips)