Volkswagen Group to invest EUR 2.4 bn in tech JV with China's Horizon Robotics

NEW DELHI – CARIAD, the software company of the Volkswagen Group, has partnered with Horizon Robotics, one of the leading providers of intelligent vehicle computing solutions in China, to accelerate the regional development of the Advanced Driver Assistance System (ADAS) and autonomous driving (AD) systems for the market, Volkswagen said.

CARIAD and Horizon Robotics plan to establish a joint venture, with CARIAD being the majority shareholder. The Volkswagen Group will invest approximately EUR 2.4 billion in cooperation with Horizon Robotics. The company said in a press release that the transaction is expected to be completed in the first half of 2023.

The statement said the partnership is part of Volkswagen Group's enhancing development competency "in China, for China" to accelerate innovation, promote technology localization and further improve customer focus in this important market.

As part of the collaboration, CARIAD and Horizon Robotics plan to develop advanced and highly optimized ADAS/AD solutions for China to drive integration of many functions on a single chip, increase system stability, save costs and reduce power consumption. Integrated software/hardware technology offers differentiation and provides cost-effective, scalable ADAS/AD solutions for BEV (battery electric vehicle) models in China.

The statement says that the closing of the deal is subject to the final signing of the transaction documents between the parties involved and the usual government approval, as well as, in particular, the approval of foreign investment and merger control authorities.

Advanced Driver Assistance System, Volkswagen Group, Horizon Robotics plan, Battery Electric Vehicles, Autonomous Driving

"The partnership with Horizon Robotics is the cornerstone of our strategy to reorganize and strengthen our activities in our most important markets around the world. The development of local technology gives the region more autonomy to expand its position in the dynamic automotive market. State-of-the-art technology including the full suite of software and hardware, which it will develop will allow us to The new joint venture will allow us to design our products and services faster and more in line with the needs of our Chinese customers allow Volkswagen to accelerate the development of automated driving solutions as part of our new automotive strategy and drive the reorganization of our business in China," said Ralph Brandstätter, Volkswagen AG Board Member for China.

"As a global automotive software and technology company of the Volkswagen Group, CARIAD is a major force in the group's transformation into a software-based mobility provider. Through a joint venture with Horizon Robotics in China and further investment in autonomous driving technology , we are confirming our position in the Innovation and Modernization in the Chinese Automotive Industry, Our goal is to create long-term value in China for the group and our shareholders in line with the expected development of the market, said Dirk Hilgenberg, CEO of CARIAD.

“Horizon Robotics is committed to empowering smart vehicles through embedded computing solutions with the goal of making human life safer and better,” said Kai Yu, founder and CEO of Horizon Robotics. "As one of the leading companies in China to market and mass-produce autonomous driving computing solutions, we will use our partnership experience with CARIAD to develop next-generation technologies for intelligent vehicle users. We believe that our integrated software and hardware solutions will continue to position Horizon Robotics as the partner of choice for international automakers in China," added Kai Yu.

Smart and intelligent driving enabled by advanced ADAS/AD systems is the key technology for future mobility and an area with high potential for market growth, where speed of development is critical. The partnership between CARIAD and Horizon Robotics provides for the formation of a joint venture in which CARIAD will have a 60% stake. The statement added that CARIAD and Horizon Robotics aim to accelerate the development and commercialization of software and hardware technologies in China's automotive sector to make automated driving for Chinese customers a faster reality.

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