Volkswagen considers using Chinese software for Europe, report says

Porsche Automobil Holding SE

Mon 15:12

BERLIN, Oct 26 (Reuters) - Volkswagen VOWG_p.DE 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 RIVN.O.
Volkswagen's 'China Electronic Architecture', a system developed for Chinese models in cooperation with local EV maker Xpeng 9868.HK, could form the basis for future cars from the group's core VW, Skoda and Cupra brands, Manager Magazin reported citing sources.
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.
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.
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 Amann
Editing by Linda Pasquini)
 ((rachel.more@thomsonreuters.com;))