By Joshua Kirby

Volkswagen AG said Thursday that it will invest more than 2 billion euros ($1.94 billion) in a joint venture in China that aims to advance efficiency in automated driving.

The German auto group said its Cariad software subsidiary will partner with Beijing-based Horizon Robotics, a supplier of smart-vehicle software solutions. Cariad will be the majority shareholder with a 60% stake, VW said, adding that the group will invest around EUR2.4 billion in the business.

The JV will work to integrate numerous automated-driving functions in one chip, VW said. This will increase the stability of the system, saving costs and reducing energy consumption, VW said.

The closing of the transaction, expected in the first six months of 2023, is subject to approval from Chinese merger and foreign-investment authorities, VW said.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

October 13, 2022 07:42 ET (11:42 GMT)

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