XPeng Inc. ( XPEV ) shares are trading higher in the premarket session on Wednesday.

The company inked a framework agreement with Volkswagen AG ( VLKAF ) (OTC:VWAGY) (OTC:VLKAF) on technical collaboration with respect to Electrical/Electronic architecture for Volkswagen’s EV platform in China.

The platform will integrate XPeng’s latest generation of E/E Architecture with central computing and domain controller-based architecture.

XPeng ( XPEV ) said that the E/E Architecture supports Gigabit Ethernet high-speed data transmission between the central and ADAS domain controllers.

“The shared passion for technology and innovation brought XPENG ( XPEV ) and Volkswagen ( VLKAF ) together,” said Xiaopeng He, Chairman and CEO of XPeng ( XPEV ). “The collaboration will allow our Smart EV products to be both technologically competitive and cost competitive.”

The jointly developed E/E Architecture is expected to equip Volkswagen brand electric vehicles produced in China from 2026.

“By expanding our partnership with XPENG ( XPEV ) and consistently integrating with China’s industrial ecosystem, we will align our products even faster to the needs of Chinese customers,” Ralf Brandstätter, Member of the Board of Management of Volkswagen AG ( VLKAF ) for China, said.

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Price Action: XPEV shares are trading higher by 2.80% to $7.35 on the last check Wednesday. 

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