Volkswagen to set up an autonomous driving JV with Beijing-based Horizon Robotic...

Volkswagen to set up an autonomous driving JV with Beijing-based Horizon Robotics

Volkswagen to set up an autonomous driving JV with Beijing-based Horizon Robotics

5 hours ago

Volkswagen plans to establish a joint venture with Beijing-based tech company Horizon Robotics, as a part of its “in China, for China” initiative.

Through its software company CARIAD, the German automaker will invest $1 billion in automotive chip supplier Horizon Robotics and a further 1.3 billion euros ($1.26 billion) in the JV, with the transaction to be completed in the first half of 2023.

Founded in 2015, Horizon Robotics counts automakers BYD and Great Wall, as well as chipmaker Intel as its investors.

According to a statement released by VW on Thursday, the two companies will work together to develop cutting-edge, highly optimized full-stack ADAS/AD solutions for China to drive forward the integration of numerous functions onto one single chip. CARIAD, which will hold a 60% stake in the JV, is going to play an active role in developing the chip technology with Horizon Robotics, and the know-how will be shared across the VW Group.

The collaboration intends to speed up the commercialization of software and hardware solutions in China's automotive sector to make automated driving for Chinese customers a reality sooner, VW said in the statement.

VW said it is accelerating the pace of innovation, promoting technological localization, and further strengthening its customer focus in China, a critical market.

It will be VW's first technology-focused JV in China, although the company has carried out research and development there before. The giant has a strong presence in China's auto-making industry through JV with state-owned automakers including SAIC, JAC and FAW.

In response to threats from Tesla and other upstarts, VW are accelerating improvements in its software capabilities, including connectivity and ensuring access to high-tech chips.

The automaker has set a target of boosting the share of its software that is developed in-house to 60% from 10% currently. In its latest five-year investment plan, which was brought out in 2021, the company doubled spending on digitalization efforts to 27 billion euros ($26.39 billion).

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