Volkswagen is contemplating the integration of a Chinese electronic and electrical architecture, a collaborative effort with Xpeng, into its European vehicle offerings. This architecture is poised to become the technological bedrock for roughly three-quarters of the forthcoming high-volume models across Volkswagen's three mainstay brands: Volkswagen, Skoda, and CUPRA. It is set to supersede the pertinent technologies that were previously procured from American partner Rivian, thereby leading to substantial cuts in development expenditures.

Previously, Volkswagen faced setbacks in its software development journey, marked by delays at its software subsidiary Cariad and the postponement of the SSP platform upgrade. To overcome these software deficiencies, Volkswagen forged alliances with both Xpeng and Rivian. The initial strategy was to leverage Xpeng's expertise for the Chinese market and Rivian's for Western markets. Should the new plan materialize, Rivian's involvement in the next-generation models of Volkswagen's flagship brands will witness a significant downsizing, potentially even being relegated to the sidelines.

Nonetheless, the implementation of this plan is contingent upon adherence to European regulatory standards. Moreover, due to geopolitical considerations, it is precluded from entering the U.S. market. Ultimately, the decision-making power lies with the group's management.