12:02 - 27.07.2023

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July 27, Fineko/abc.az. Volkswagen Group (VW) is likely to invest about $700 million in Chinese electric vehicle manufacturer Xp eng.

ABC.AZ reports that the German concern will receive 4.99% in Xpeng at the price of $15 per American depositary share (ADS).

For this, the Chinese company will issue new Class A ordinary shares.

In addition, the companies will jointly develop two B-class electric vehicles under Volkswagen brand for sale in China. The start of their production is scheduled for 2026.

Audi, a member of the Volkswagen group, has also signed a strategic memorandum on expanding cooperation with its Chinese partner SAIC. The companies intend to "quickly and efficiently" replenish the line of premium electric vehicles and at the first stage will jointly develop models for the segment where Audi is not yet represented on the Chinese market.