Feb. 22, China – people familiar with the matter reported in local media Cailian that Volkswagen is discussing with Huawei’s CEO about acquiring Huaiwei’s automotive division team. Further information will be announced by the end of March.
According to another China media, Jieman’s, report, the two companies will form a joint venture, with Volkswagen funding and controlling the company, and Huawei providing the technology to become a tier1 supplier.
Jiemian suggests that. “This is like Huawei selling its autonomous driving business to Volkswagen.”
Details of the collaboration
German magazine Manager reported that Volkswagen is in talks with Huawei to buy the latter’s autonomous driving unit for billions of euros.
Qing Su, who was Huawei’s automotive product CEO before leaving this January, will be attending this joint venture for product person in charge.
In January, Volkswagen China CEO Stephan Wöllenstein said that the German automaker and Huawei were indeed in discussions, but there was no confirmable news, including the formation of a joint venture between the two companies.
Why would Volkswagen make this choice?
Volkswagen’s cooperation with Huawei is established on Volkswagen’s CEO Diess and the fellow manager’s high expectation of automotive driving.
In 2021, Feb., 9, Diess was asked to continue to be Volkswagen’s CEO and will be managing the software sector CARIAD from 2022 January.
In 2021, Feb 9, Diess also published the Round 70 plan for 2022-2026 development. About 890 billion euros are invested into electric motives and digitization. This number acquired 56% of the total investment for Volkswagen’s future plans.
Among these, investments for the automotive driving products and the companies’ digitization reached 300 billion euros. This is about 10% higher than the previous plans, occupying almost one-third of the total investment.
Volkswagen(Anhui), it’s another joint venture with JAC Motor, also focuses on the NEV related market. This also suggests it is attaching importance to the future of automotive driving and new energy vehicles.