Cariad, Volkswagen Group’s software subsidiary, will form a joint venture (JV) with Horizon Robotics, as per CnEVPost.
VW Group plans to invest about 2.4 billion euros for a 60% stake in the JV. According to a statement from Horizon Robotics, it expects to close in the first half of 2023.
“Teaming up with Horizon Robotics will allow Volkswagen to accelerate the development of automated driving as part of our NEW AUTO strategy and drive the repositioning of our China business.” says Volkswagen Management Board Member Ralf Brandstätter.
It will be subjected to the final signing of the transaction documents, customary government approvals, merger control, and foreign investment authority approvals for the deal’s completion.
The new JV would be the latest of many joint ventures Volkswagen already has in China. The German automaker has a 75% stake in a JV with JAC, 50% with SAIC Group, and 40% with FAW Group.
“As one of the leading companies to commercialize and mass produce computing solutions of autonomous driving in China, we will bring in our expertise to our partnership with CARIAD to develop next-generation technologies for smart vehicle users.” Horizon Robotics CEO Dr. Kai Yu said.
“The partnership with Horizon Robotics is a central cornerstone of our strategy to realign and further strengthen our activities in our most important market worldwide. Localized technology development grants the region more autonomy to further expand its position in the dynamic automotive market.” stated Brandstätter.
“Cutting-edge technology comprising the full software and hardware stack, which the new joint venture will develop, will enable us to tailor our products and services even faster and more consistently to the needs of our Chinese customers.” Brandstätter added.
Volkswagen expects the move to improve Chinese customers’ perception of the assisted driving capabilities of the offered EV models.
“Since its inception, Horizon Robotics has worked to make every car equipped with its intelligent computing platform and believes it will become the partner of choice for international car companies in China,” said Dr. Kai Yu.
CARIAD and Horizon Robotics aim to fasten the development and commercialization of software and hardware technologies in China’s automotive sector. And to make automated driving reality faster for Chinese customers.
