Volkswagen considers using Chinese software for Europe, report says

Volkswagen Considers Chinese Software for European EV Models

Volkswagen's Strategic Shift in EV Software

BERLIN, Oct 26 (Reuters) - Volkswagen could roll out the software currently used in its cars for the Chinese market to its mass-market offering in Europe, according to a media report on Monday, in a move that threatens to sideline its US partner Rivian.

China Electronic Architecture and Xpeng Collaboration

Volkswagen's 'China Electronic Architecture', a system developed for Chinese models in cooperation with local EV maker Xpeng, could form the basis for future cars from the group's core VW, Skoda and Cupra brands, Manager Magazin reported citing sources.

Proposal Presentation and Model Coverage

Core brand chief Thomas Schaefer is expected to present the proposal to management on Tuesday, the report said. It would cover around three quarters of next-generation models from the three brands, which are ramping up their EV offering in Europe.

Volkswagen declined to comment on the report.

Current Software Strategy and Challenges

Separation of Software Development

The company has so far kept software separate, using the architecture co-developed with Xpeng for the Chinese market while developing a separate technology for the Western world with Rivian, in a $5.8 billion investment at the heart of CEO Oliver Blume's software strategy.

Scaling Difficulties and Cariad's Role

Complex Model Offering

Volkswagen has struggled to keep pace on software. The group's complex model offering, from mass-market brands to high-end marques like Audi and Porsche, has posed difficulties to scaling, including at in-house unit Cariad.

(Reporting by Rachel More and Christina AmannEditing by Linda Pasquini)