Volkswagen invests billions in Chinese language autonomous driving agency

Volkswagen is teaming up with Horizon Robotics, however regardless of its identify, the German automaker isn’t taking over Hyundai’s Boston Dynamics division.

Late final week, Volkswagen introduced a deal totalling €2.4 billion ($3.7 billion) with the Chinese language agency Horizon Robotics.

The 2 will kind a three way partnership firm which might be 60 per cent owned by Volkswagen by way of it its software program arm Cariad.

Based on Reuters, about €1.3 billion ($2 billion) of Volkswagen’s spend might be capital for the brand new firm. The rest of the cash will go into Horizon Robotics itself.

The three way partnership’s major job might be growing superior driver help techniques (ADAS) and autonomous driving (AD) expertise for the Chinese language market, particularly totally built-in {hardware} and software program packages for electrical automobiles.

In addition to growing self-driving expertise, the tie up with Horizon Robotics is a part of Volkswagen’s push to permit its regional arms to function with larger independence with the intention to tailor services and products to their clients.

Regardless of this, Ralf Brandstätter, head of Volkswagen China, advised the information wire learnings from the Horizon Robotics three way partnership might be fed by way of to Volkswagen’s self-driving efforts elsewhere.

Within the US, Volkswagen has an autonomous expertise partnership with cellular chip-maker Qualcomm, whereas in Europe it’s working with STMicroelectronics.

As we famous in our 2021 World Gross sales Race characteristic, China is well Volkswagen’s largest and most essential market. The German automaker bought 3,304,800 automobiles there throughout its multitude of manufacturers in 2021, simply besting all of western Europe (2,860,400).

Horizon Robotics is not any stranger to the Volkswagen Group because it at present works with the Audi model in China. It additionally provides elements and expertise to Continental, Li Auto, and SAIC, which owns the MG and Maxus manufacturers.

Volkswagen can also be not the primary overseas agency to put money into Horizon, with chip-maker Intel having already purchased into the agency. Different traders embody native automotive rivals BYD and Nice Wall.