Volkswagen Takes $700 Million Xpeng Stake for EV Pact to Win Back China

(Bloomberg) — Volkswagen AG plans to invest $700 million in Xpeng Inc. and jointly develop electric vehicles in China as the German automaker fights to halt a sales slide in its most important market.

VW will eventually hold a 4.99% stake in the Chinese company via a capital increase and is getting an observer board seat, it said Wednesday. Its Audi premium brand will deepen ties with VW’s long-term partner SAIC Motor Corp. Ltd. to also bolster its EV lineup.