In an article published on February 17, 2022 in the German magazine Store Managerwe learn that Volkswagen is in talks with Huawei to buy out its self-driving division. According to the information disclosed, the amount of the operation could climb to several billion euros.
Volkswagen wants to accelerate in the field of autonomous driving
Like many Chinese tech giants, Huawei entered the self-driving market a few years ago. In 2020, Huawei said it wanted develop its own technologies to sell them then to manufacturers around the world. It is precisely this division on autonomous vehicles that interests Volkswagen. A unit dedicated to autonomous driving, which is part of the commercial division of the group in charge of solutions for intelligent vehicles.
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For its part, the German manufacturer has already been interested in autonomous driving technologies for several years. In 2019, the group invested $2.6 billion in Argo AI. Last year, Volkswagen chose a new technological foal to accelerate the development of its autonomous vehicles. The German automaker announced a new collaboration with Microsoft to accelerate the deployment of its autonomous driving technologies.
A way for the German manufacturer to get closer to the Chinese market?
Last year, the Shenzhen-based company showcased its automated driving solutions. The Chinese giant says its technology even surpasses that of Tesla in some areas. In China, Huawei had already established partnerships with three automotive companies, namely BAIC Group, Chongqing Changan Automobile and Guangzhou Automobile Group. Huawei technologies must equip their vehicles. The Chinese giant therefore seems to be well advanced in the field of autonomous driving technologies.
With all these investments, it is difficult to understand why the Chinese giant would like to sell its division. It would be a great operation for the German manufacturer, but not necessarily for the Chinese technology company. Indeed, by taking over this unit, Volkswagen could seek to strengthen itself even more in this area and getting closer to china, a key market for automakers. Whatever the outcome of these rumors, Volkswagen plans to build an R&D team of 5,000 employees, including more than 2,000 working solely on autonomous driving.