An investment of around €2.4bn will be made in total by Volkswagen Group in the automated driving solutions partnership with Horizon Robotics, which is a provider of computing solutions for smart vehicles in China

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Volkswagen Group to invest €2.4bn in its partnership with Horizon Robotics in China. (Credit: Volkswagen AG)

Volkswagen Group, through its subsidiary CARIAD, plans to create a joint venture (JV) with Horizon Robotics for expediting the development of advanced driver assistance system (ADAS) and autonomous driving (AD) systems for the Chinese market.

An overall investment of around €2.4bn will be made by Volkswagen Group in the automated driving solutions partnership with Horizon Robotics, which is a computing solutions provider for smart vehicles in China.

CARIAD is an automotive software company within the Volkswagen Group. The former will hold a stake of 60% in the joint venture, while Horizon Robotics will own the remaining 40%.

Horizon Robotics founder and CEO Kai Yu said: “Horizon Robotics is committed to empowering smart vehicles through integrated computing solutions with the mission to make human life safer and better.

“As one of the leading companies to commercialize and mass produce computing solutions of autonomous driving in China, we will bring in our expertise to the partnership with CARIAD to develop next-generation technologies for smart vehicle users.

“We believe our integrated software and hardware solutions will continue to position Horizon Robotics as a partner of choice for international auto makers in China.”

CARIAD and Horizon Robotics intend to jointly develop the latest and optimised full stack ADAS/AD solutions for China to fuel the integration of multiple functions on a single chip. This is expected to enhance the stability of the system, reduce costs, and lower the consumption of energy.

According to Volkswagen Group, the fully integrated software/hardware technology provides differentiation and gives scalable and cost efficient ADAS/AD solutions for its battery electric vehicles models in China.

Volkswagen China management board member Ralf Brandstätter said: “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.”

The deal is expected to be finalised in the first half of next year, said Volkswagen Group. It will be subject to the final signing of the deal documents between the involved parties, customary government approval, and the approval of merger control and foreign investment bodies.