(Yicai Global) Oct. 14 -- Volkswagen's software unit Cariad will invest EUR2.4 billion (USD2.3 billion) in a joint venture with Horizon Robotics, a leading Chinese supplier of computing solutions for smart vehicles, to speed up customization of automated driving systems in the Chinese market.

Cariad will take a 60 percent stake in the new company, the German automaker said in a press release yesterday. Subject to regulatory approval, the transaction is expected to be completed in the first half of next year, it added.

“Teaming up with Horizon Robotics will allow Volkswagen to accelerate the development of automated driving solutions as part of our New Auto strategy and drive the repositioning of our China business,” said Ralf Brandstätter, a member of the management board of Volkswagen China.

He described VW’s new partnership with Beijing-based Horizon Robotics as a “central cornerstone of our strategy to realign and further strengthen our activities in our most important market worldwide.”

The pair plans to develop cutting-edge, highly-optimized full-stack advanced driver assistance systems and autonomous driving solutions to promote the integration of numerous functions on one chip, increasing the stability of the systems, saving costs, and lowering energy consumption, Volkswagen said. The fully integrated software and hardware technology will offer differentiation and provide scalable and cost-efficient ADAS and AD solutions for VW's battery electric vehicle models in China. 

“Cutting-edge technology comprising the full software and hardware stack, which the new JV will develop, will enable us to tailor our products and services even faster and more consistently to the needs of our Chinese customers," Brandstätter added.

“Localized technology development grants the region more autonomy to further expand its position in the dynamic automotive market,” he said.

Founded in 2015, Horizon Robotics focuses on developing energy-efficient computing solutions for ADAS and AD for smart vehicles.

Editor: Futura Costaglione