Volkswagen to Invest $2.3 Billion into Autonomous Driving Venture in China
Volkswagen announced a new joint venture with Chinese company Horizon Robotics to accelerate its automated driving plans, as detailed in a press release from the automaker.
The Volkswagen Group will invest €2.4 billion euros ($2.3 billion USD) into the joint venture, while its software company CARIAD will hold a majority stake in the company at 60 percent.
The companies plan to create a single integrated chip to help reduce energy consumption, increase stability and save money for the automated systems, which Volkswagen expects to be scalable enough for electric vehicle (EV) use cases.
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“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,” said Ralf Brandstätter, Member of the Management Board of Volkswagen AG for China. “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.”
The news comes just a few months after former Volkswagen CEO Herbert Diess stepped down, with Oliver Blume stepping in to take his place. Under Blume, the company plans to shrink its management board by a third.