Volkswagen ( OTCPK:VWAGY ) announced a majority stake in a new joint venture alongside Chinese tech firm Horizon Robotics on Thursday.
Via its software unit Cariad, the German automaker said that it will invest €2.4B to take a 60% stake in the venture to “strengthen its customer focus in this important market” and improve Advanced Driver Assistance System (ADAS) and Autonomous Driving ( AD ) systems for use in China. The transaction is due to be completed in the first half of 2023.
“The partnership with Horizon Robotics is a central cornerstone of our strategy to realign and further strengthen our activities in our most important market worldwide,” Ralf Brandstätter, Member of the Management Board of Volkswagen AG for China, said. “Cutting edge technology comprising the full software and hardware stack, which the new joint venture will develop, will enable us to tailor our products and services even faster and more consistently to the needs of our Chinese customers. 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.”
Frankfurt-listed shares of Volkswagen ( OTCPK:VWAGY ) rose 2.06% in the afternoon European session.
The agreement had been rumored for about a week prior to the announcement .
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Volkswagen takes majority stake in Chinese tech joint venture