Volkswagen to take 60% Stake in Joint Venture with China’s Horizon Robotics

Volkswagen’s software unit ‘Cariad’, will spend more 2 billion dollars in a joint venture, and take a 60 percent stake in a new venture with Horizon Robotics, a Chinese technology company, tackling two big challenges, including software and the Chinese market.

Volkswagen will invest 1 billion dollars in Horizon Robotic and a further 1.3 billion euros in the joint venture, with the transaction to be complete in the first half of 2023. Together, the two companies will develop technology that can integrate many functions for autonomous driving onto a single chip, which will be available only in China.

This joint venture will mean Volkswagen has a supplier in each of the major regions, including Europe, China, and North America, given its existing supply relationships with Qualcomm and STMicrolectronics. In partnership with Qualcomm, Cariad will play an active role in developing the chip technology with Horizon Robotics, and will be shared across the Volkswagen Group.

Ralf Brandstaetter, head of Volkswagen Group, said that is why this partnership with Horizon Robotics is deeper. This partnership is a part of a larger push by Volkswagen to strengthen its software offering, and make its mark on the electric vehicle market in China, where it lags competitors, including Tesla and BYD.