Volkswagen to invest about 2.4 bln euros in joint venture between Cariad and Horizon Robotics

Photo taken on July 11, 2020 shows a Volkswagen new energy vehicle on display during the 17th China (Changchun) International Automobile Expo held in Changchun, northeast China's Jilin Province. (Xinhua/Zhang Nan)

German carmaker Volkswagen Group has recently announced to invest about 2.4 billion euros (about 2.34 billion U.S. dollars) in the establishment of a joint venture between its subsidiary Cariad and Chinese AI chipmaker Horizon Robotics, reported Shanghai Securities News on Sunday.

The transaction is expected to be completed in the first half of 2023. Aiming to accelerate the development of advanced driver-assistance systems and autonomous driving systems for the Chinese market, this cooperation will serve as a central cornerstone that drives the strategical repositioning of Volkswagen's China business, according to Ralf Brandstatter, chief executive officer (CEO) of Volkswagen China.

Through establishing the joint venture with Horizon Robotics, along with further investment in autonomous driving technology, Cariad is looking to underline its position amid the process of innovation and modernization of China's automotive industry, said Dirk Hilgenberg, CEO of Cariad, noting that the goal is to create long-term value in the Chinese market that is in line with market expectation.

Committed to provide next-generation technologies and solutions for smart vehicle users in China, Horizon Robotics also believes that the cooperation will allow the company to bring its expertise to the partnership with Cariad, according to Yu Kai, founder and CEO of Horizon Robotics.