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German automobile giant Volkswagen is reportedly in talks
to acquire Chinese technology giant Huawei’s nascent autonomous driving unit
for “billions of euros.”
The leaders of the two companies have been negotiating the
deal for several months, Germany’s Manager Magazine reported on late Thursday,
citing inside sources.
Carmakers and technology firms worldwide are investing
billions of dollars in autonomous driving, aiming to take an early lead in the
future of mobility.
Huawei’s autonomous driving business would cost several
billion dollars as the Chinese giant’s smart car unit in April last year said
it would invest $1 billion in research and development for the year, with an
aim to build a team of 5,000 staff, including more than 2,000 people in
autonomous driving.
Earlier this week, Volkswagen CEO Herbert Diess said he
expects the automobile industry to see widespread self-driving cars within 25
years. He also mentioned that the company was pursuing new partnerships to
increase its self-sufficiency in software.
Embracing future of mobility
Huawei’s autonomous vehicle unit, which started in 2019,
sits under the company’s “smart vehicle solution” business unit.
The founding of the new business unit spurred much
speculation over whether Huawei would develop its own cars.
However, the telecom equipment and smartphone behemoth has
repeatedly denied any manufacturing plans and said it instead wants to be the
“Bosch of China” or a components supplier for car brands.
For Volkswagen, the world’s second-largest automobile
company after Japan’s Toyota, acquiring an autonomous vehicle unit from a tech
firm could help the carmaker prepare for the future.
In July 2019, the German giant struck a partnership with
Argo AI, a Pittsburg-based startup backed by Ford and VW, to introduce
autonomous vehicle technology in the U.S. and Europe. The duo unveiled a
self-driving electric van last September.
On Wednesday, Nvidia Corp (NASDAQ: NVDA)
said British luxury carmaker Jaguar Land Rover signed a deal with the chipmaker to develop
next-generation automated driving systems with artificial intelligence-enabled
services jointly.
Picture Credit: TechnoPixel