XPeng (NYSE: XPEV), a leading electric vehicle manufacturer, and the Volkswagen Group, a leading global automaker, have finalized a strategic framework agreement to accelerate joint development of new B-class battery electric vehicles under the VW brand.

The master agreement will allow both parties to streamline their respective supply chains as well as jointly source common vehicle parts. The companies say that the goal will be to significantly reduce costs while creating new synergies as the two sides work to deepen their strategic collaboration in the future. As part of the agreement, originally announced in December, Volkswagen has also acquired a 4.99% stake in Xpeng.

Mr. Xiaopeng He, Chairman and CEO of XPENG stated: “Combining Volkswagen's highly reputable vehicle development and engineering capability with XPENG's Smart EV technologies, we will deliver the best smart EV products to Chinese consumers.”

Headquartered in China, XPeng is a leading smart EV company that develops, manufactures, and markets electric vehicles. The company’s mission is to drive Smart EV transformation with technology, shaping the mobility experience of the future.

Shares of XPENG trade on the NYSE under the ticker symbol XPEV.