To Compete With Tesla, Volkswagen Injects $2.3B In Chinese Autonomous Driving Venture

To Compete With Tesla, Volkswagen Injects $2.3B In Chinese Autonomous Driving Venture
  • Volkswagen AG's VWAGY software unit Cariad will take a 60% stake in a new venture with Chinese technology firm Horizon Robotics for over $2 billion.
  • The German carmaker will invest $1 billion in Horizon Robotics and €1.3 billion in the joint venture.
  • The companies will develop technology that can integrate numerous functions for autonomous driving onto a single chip that will be available only in China.
  • The venture will mean Volkswagen has a supplier in each significant region, Reuters reported, given its existing supply relationships with Qualcomm Inc QCOM and STMicrolectronics NV STM.
  • Cariad will play an active role in developing the chip technology with Horizon Robotics. The know-how will be shared across the Volkswagen Group, said Ralf Brandstaetter, Volkswagen China's chief.
  • "That's why this cooperation with Horizon Robotics is deeper," he added.
  • Horizon Robotics' investors include carmakers like BYD BYDDF BYDDYGreat Wall Motors, and Intel Corporation INTC.
  • It is part of a broader push by Volkswagen to strengthen its software offering in the Chinese electric vehicle market, where it lags competitors - BYD and Tesla Inc TSLA.
  • The transaction will complete in the first half of 2023.

Posted In: BriefsNewsContractsTechGeneral