Volkswagen considers using Chinese software for Europe, report says

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.

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.

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 AmannEditing by Linda ‌Pasquini)

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