By Li Panpan

China’s leading autonomous driving company Horizon Robotics(地平线) announced on October 13 that it would set up a joint venture with CARIAD, a software company under the Volkswagen Group. CARIAD will hold a majority stake of 60%.

The Volkswagen Group plans to invest around 2.4 billion euros ($2.35 billion) in the partnership, which is expected to close in the first half of 2023. This investment transaction has yet to be signed by all parties and approved by relevant government agencies.

It’s reported that in response to the Chinese market demand, CARIAD will work with Horizon Robotics to develop full-stack advanced driver assistance systems and autonomous driving solutions, integrating multiple functions on a single chip. The project's object is to improve system stability, save costs and reduce energy consumption, provide scalable and cost-effective advanced driver assistance systems and autonomous driving solutions for Volkswagen Group’s pure electric vehicles in China.

Ralf Brandstätter, chairman and CEO of Volkswagen Group (China), said, “Future joint ventures will develop cutting-edge technologies, including complete software and hardware stack technologies. Through cooperation with Horizon Robotics, we will accelerate developing autonomous driving, NEW AUTO strategy, and further driving business transformation in China.”