Volkswagen has struck a new partnership to accelerate its pace in automating electric vehicles for Chinese customers.
CARIAD, a wholly owned automotive software company of Volkswagen, intends to establish a joint venture with Horizon Robotics, a Chinese auto chip startup, the company announced last Thursday.
Volkswagen’s 2.4-billion-euro investment in the joint venture with Horizon Robotics aims to build full-stack autonomous driving software and hardware systems, Tasha Keeney, director of investment analysis & institutional strategies at ARK Invest, wrote in an October 17 newsletter.
Despite the investment risks associated with China’s weakening economy, Volkswagen could be feeling pressure to accelerate the development of fully autonomous cars in its largest market, Keeney said.
“In our view, robotaxis will become winner-takes-most markets by geography. Companies in the U.S. and China appear to be moving faster than European competitors,” Keeney wrote. “Its new venture is likely to add another layer of complexity to VW’s already-complicated corporate structure as the company regroups after ousting its CEO.”
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