BERLIN – Volkswagen will invest 2.4 billion euros ($2.33 billion) and take a 60-percent stake in a new joint venture with Chinese technology company Horizon Robotics for autonomous driving software and hardware, the carmaker said on Thursday.
The companies will work together to develop technology that can integrate numerous functions for autonomous driving onto a single chip, the statement said.
Horizon Robotics, founded in 2015, supplies customers including Volkswagen’s Audi, Continental, Li Auto and SAIC, according to its website. Investors include carmakers like BYD and Great Wall as well as Intel.
Volkswagen already carries out research and development in China but this is its first joint venture focused specifically on technology, an area where it is currently lagging behind Chinese competitors in the electric vehicle market.
The carmaker, which makes around 40 percent of sales and half of profits in the country, holds a 75-percent stake in a joint venture with JAC , a 50-percent stake with SAIC and 40 percent with FAW.
($1 = 1.0290 euros)