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Volkswagen wants to strengthen its position in China

German carmaker Volkswagen has agreed a joint venture with Chinese firm Horizon Robotics. It's another step towards autonomous driving.

Lately, all the news about European carmakers has revolved around the energy problem. For example, we recently informed you that carmaker Mercedes is stockpiling parts for fear of a winter gas shortage.

However, despite the difficult situation and the unclear future, we can still see efforts to invest. The latest one came from carmaker Volkswagen, which announced a โ‚ฌ2.4 billion investment in a joint venture with Chinese firm Horizon Robotics, in which the German carmaker will have a 60% stake.

Volkswagen at the forest

Related: European car production could fall by 40%

Horizon Robotics is one of the leading suppliers of computing solutions for intelligent vehicles in China. The company was founded in 2015 and simultaneously supplies its solutions to Audi, Continental, Li Auto, and SAIC, among others.

So it’s a clear step towards more advanced autonomous driving, a topic that more carmakers are addressing for the future. Volkswagen’s main software company, CARIAD, will represent the entire collaboration.

This is an effort to strengthen its position in the Chinese market

This partnership will be aimed at strengthening Volkswagen’s position in the Chinese market, which, according to Volkswagen AG board member Ralf Brandstรคtter, is the most important market for the company. This is supported by the fact that the German carmaker makes around 40% of its sales and half of its profits in China.

“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. 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. Teaming up with Horizon Robotics will allow Volkswagen to accelerate the development of automated driving solutions as part of our NEW AUTO strategy and drive the repositioning of our China business.”

Read also: US refiners prepare for possible fuel export ban

Specifically, the two companies plan to collaborate on the development of a cutting-edge, highly optimized full-stack ADAS/AD solution. The goal is to integrate a range of autonomous driving functions into a single chip. The statement reads.

“Smart, intelligent driving enabled by advanced ADAS/AD systems is the key technology of future mobility and an area with high potential for market growth, in which the speed of development is paramount.”

Bruno is an Investment enthusiast with several years of experience in the industry. He enjoys following the latest news and technology trends...

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