Shulou(Shulou.com)11/24 Report--

CTOnews.com, May 17 (Xinhua) Volkswagen has held talks with Huawei about the use of Huawei software in its Chinese cars, according to the Financial Times.

Volkswagen has held talks with Huawei about the use of the latter technology in Volkswagen, while another person familiar with the matter said Volkswagen had held similar talks with other Chinese groups, according to three people familiar with the matter.

Volkswagen created its own software division, Cariad, in 2020, but has been plagued by problems since its inception, including budget overruns and delays that have blocked the launch of new electric vehicles such as Audi's Q6 e-tron and Porsche Macan. To that end, Volkswagen CEO Oliver Bloom replaced almost all Cariad executives earlier this month.

In terms of sales, Volkswagen sells more cars than any other Chinese carmaker, but it lags behind competitors such as Tesla and BYD in the fast-growing and potentially lucrative electric vehicle market, ranking only ninth. The market share is about 2%, and China is the world's largest electric car market. In order to gain a foothold in China's electric vehicle market, Volkswagen recently developed a "in China, for China" strategy. In recent years, Volkswagen has announced billions of euros of investment in areas such as self-driving cars.

It is reported that Huawei and the Audi brand of Volkswagen Group signed a memorandum of understanding on strategic cooperation in Berlin in July 2018 to jointly develop intelligent Internet vehicles. In the field of self-driving cooperation, Audi and Huawei's comprehensive strategic cooperation is also further.

As early as October 2021, it was reported that Huawei planned to form a joint venture with global auto giant Volkswagen Group to develop self-driving technology. One of the ways to discuss cooperation is for Volkswagen Group to invest and become a controlling shareholder in the joint venture, while Huawei mainly provides technology IP (intellectual property rights). Among them, the technology IP provided by Huawei includes not only software technologies such as self-driving, but also Huawei's chip-based IP.

Feng Sihan, CEO of Volkswagen China, said that Huawei and Volkswagen will form a joint venture self-driving company, but there is no confirmation at this stage, "including the establishment of a joint venture between the two sides."

Volkswagen has been cleaning up its vast business to free up money to develop battery and software capabilities. In December, the company said it would invest 89 billion euros (CTOnews.com Note: about 675.51 billion yuan today) in future technologies such as electric cars and digital to improve its competitiveness over the next five years.

In October last year, it was reported that Volkswagen Group was planning to invest in a software production joint venture in China, with an investment of more than 1 billion euros.

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