Volkswagen plans over 1 billion euro investment in software JV in China – sources
2022.10.06 04:53
© Reuters. FILE PHOTO: The logo of carmaker Volkswagen Commercial Vehicles is pictured at the IAA Transportation fair, which will open its doors to the public on September 20, 2022, in Hanover, Germany, September 19, 2022. REUTERS/Fabian Bimmer
BERLIN (Reuters) – Volkswagen (ETR:) is planning a significant investment in a joint venture in China for software production, sources with knowledge of the matter said on Thursday.
An official announcement is expected next week, one person close to negotiations said. Two sources said the investment would be above 1 billion euros ($990.60 million).
Volkswagen declined to comment.
The carmaker was waiting for the results of the elections taking place on Sunday in the state of Lower Saxony, Volkswagen’s second-largest shareholder with two seats on its supervisory board, before making the announcement official, the sources said.
Volkswagen, which makes about 40% of sales and half of its profits in China, already carries out research and development for vehicle technology in the country, seen as a more advanced market on digital innovation than Europe or the United States.
Volkswagen operates numerous joint ventures in China, holding a 75% stake in its venture with JAC, a 50% stake with SAIC and 40% with FAW.
In Germany, the carmaker’s software subsidiary Cariad has a partnership with autos supplier Bosch to develop software for automated driving.
($1 = 1.0095 euros)
