Porsche will pay Volkswagen Commercial Vehicles 100 million euros (about 722 million yuan) as compensation for withdrawing from the production agreement for the flagship electric vehicle. Porsche will produce its electric flagship model at its factory in Leipzig, called the K1 internally.
It is reported that an agreement has been reached within the Volkswagen Group to allow Porsche to produce the upcoming high-performance electric vehicles at its own factory, rather than at Volkswagen's Hanover plant for commercial vehicles.
The previous plan was to produce the sister cars of Porsche, Audi and Bentley together at Volkswagen Commercial Vehicle's Hanover plant. It's also part of Audi's Artemis Project, which will create new technologies for highly automated cars.
However, Porsche believes that Porsche users are less interested in automation than in performance, so it does not want to use the advanced driver assistance systems offered by Artemis.
Porsche will produce its electric flagship model at its factory in Leipzig, called the K1 internally. The car will still be based on an electric vehicle architecture jointly developed by Audi and Porsche, although it will not use the technology that Audi developed for the Artemis project.
Meanwhile, Volkswagen's Hanover plant will produce Volkswagen ID.BUZZ as well as flagship electric cars manufactured by Audi and Bentley.