Volkswagen’s software unit Cariad said on Thursday that it would spend more than $2 billion and acquire a 60% stake in a new joint venture with Chinese technology company Horizon Robotics.
The unit will invest $1 billion in Horizon Robotics and additional $1.26 billion in the joint venture, Volkswagen said, and the transaction is expected to be completed during the first half of 2023.
The two companies will develop technology, which could integrate a variety of functions for autonomous driving onto a single chip that will be China exclusive.
Cariad is expected to play an active role in the chip technology development with Horizon Robotics, while the know-how is to be shared across the Volkswagen Group.
Established in 2015 in Beijing, Horizon Robotics has supplied clients such as BYD, Volkswagen’s Audi, Continental, SAIC and Li Auto, while its investors include BYD, Great Wall Motors and Intel.
As of 8:10 GMT on Friday the shares of Volkswagen AG were inching down 0.05% (EUR 0.08) on the day, following a 2.09% gain in the prior session, to trade at EUR 163.72 in Frankfurt.