Home » Volkswagen to take 60% stake in $2 bln tech JV with China’s Horizon Robotics

Volkswagen to take 60% stake in $2 bln tech JV with China’s Horizon Robotics

BERLIN, Oct 13 (Reuters) – Volkswagen’s software program unit Cariad (VOWG_p.DE) will spend greater than $2 billion and take a 60% stake in a brand new enterprise with Chinese language know-how agency Horizon Robotics, it stated on Thursday, tackling two massive challenges: software program and the Chinese language market.

The carmaker will make investments $1 billion in Horizon Robotics and an additional 1.3 billion euros ($1.26 billion) within the three way partnership, with the transaction to be accomplished within the first half of 2023.

Collectively the businesses will develop know-how that may combine quite a few features for autonomous driving onto a single chip that will likely be accessible solely in China.

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The enterprise will imply Volkswagen has a provider in every main area – North America, Europe and China – given its current provide relationships with U.S. chipmaker Qualcomm and Franco-Italian STMicrolectronics(STM.BN).

In distinction to the partnership with Qualcomm, Volkswagen’s software program unit Cariad will play an energetic position in creating the chip know-how with Horizon Robotics, and the know-how will likely be shared throughout the Volkswagen Group, the carmaker’s China chief Ralf Brandstaetter stated.

“That is why this cooperation with Horizon Robotics is deeper,” he added.

Its a part of a wider push by Volkswagen to strengthen its software program providing and make its mark on the Chinese language electrical car market, the place it lags home opponents – notably BYD (002594.SZ) – and Tesla (TSLA.O).

Horizon Robotics, based in Beijing in 2015, has equipped prospects together with BYD, Volkswagen’s Audi, Continental (CONG.DE), Li Auto and SAIC, in accordance with its web site.

Buyers embrace carmakers like BYD and Nice Wall Motors in addition to Intel.

($1 = 1.0283 euros)

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Reporting by Victoria Waldersee
Modifying by Madeline Chambers, Miranda Murray and Barbara Lewis

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