Volkswagen to take 60% of Carid, joint venture, with Horizon Robotics

Volkswagen’s software unit Cariad will spend more than $2 billion and take a 60% stake in a new venture with Chinese tech firm Horizon Robotics, the company said Thursday, tackling two big challenges: software and technology. Chinese market.

The automaker will invest $1 billion in Horizon Robotics and another €1.3 billion ($.260 million) in the joint venture, a deal due to be completed in the first half of 2023.

Together, the companies will develop a technology capable of integrating numerous functions for autonomous driving on a single chip that will only be available in China.

Volkswagen will now have a supplier in each of the major regions – North America, Europe and China – given its current supply relationships with US chipmaker Qualcomm and Franco-Italian STMicroelectronics.

Unlike the partnership with Qualcomm, Volkswagen’s software unit Cariad will play an active role in developing chip technology with Horizon Robotics, with know-how shared across the Volkswagen Group, the head of the company said. automaker in China, Ralf Brandstaetter.

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

It is part of a broader push by Volkswagen to beef up its software offering and make its mark in the Chinese electric vehicle market, where it lags behind competitors, notably BYD and Tesla.