BERLIN, Oct 13 (Reuters) - Volkswagen's software unit Cariad (VOWG_p.DE) will spend more than $2 billion and take a 60% stake in a new venture with Chinese technology firm Horizon Robotics, it said on Thursday, tackling two big challenges: software and the Chinese market.<\/p>\n
The carmaker will invest $1 billion in Horizon Robotics and a further 1.3 billion euros ($1.26 billion) in the joint venture, with the transaction to be completed in the first half of 2023.<\/p>\n
Together the companies will develop technology that can integrate numerous functions for autonomous driving onto a single chip that will be available only in China.<\/p>\n
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The venture will mean Volkswagen has a supplier in each major region - North America, Europe and China - given its existing supply relationships with U.S. chipmaker Qualcomm and Franco-Italian STMicrolectronics(STM.BN).<\/p>\n
In contrast to the partnership with Qualcomm, Volkswagen's software unit Cariad will play an active role in developing the chip technology with Horizon Robotics, and the know-how will be shared across the Volkswagen Group, the carmaker's China chief Ralf Brandstaetter said.<\/p>\n
\"That's why this cooperation with Horizon Robotics is deeper,\" he added.<\/p>\n
Its part of a wider push by Volkswagen to strengthen its software offering and make its mark on the Chinese electric vehicle market, where it lags domestic competitors - notably BYD (002594.SZ) - and Tesla (TSLA.O).<\/p>\n
Horizon Robotics, founded in Beijing in 2015, has supplied customers including BYD, Volkswagen's Audi, Continental (CONG.DE), Li Auto and SAIC, according to its website.<\/p>\n
Investors include carmakers like BYD and Great Wall Motors as well as Intel.<\/p>\n
($1 = 1.0283 euros)<\/p>\n
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Reporting by Victoria WalderseeEditing by Madeline Chambers, Miranda Murray and Barbara Lewis<\/p>\n
Our Standards: The Thomson Reuters Trust Principles.<\/p>\n
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Volkswagen to take 60% stake in $2 bln tech JV with China's Horizon Robotics - Reuters<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" BERLIN, Oct 13 (Reuters) - Volkswagen's software unit Cariad (VOWG_p.DE) will spend more than $2 billion and take a 60% stake in a new venture with Chinese technology firm Horizon Robotics, it said on Thursday, tackling two big challenges: software and the Chinese market. The carmaker will invest $1 billion in Horizon Robotics and a further 1.3 billion euros ($1.26 billion) in the joint venture, with the transaction to be completed in the first half of 2023. Continue reading