A potential deal has been discussed for several months. It is assumed that VW will be able to use the developments to create their future models.
Volkswagen brand sales results in China have been declining since 2018. Customers bought 2,609,266 vehicles during Covid 2020, down 15.8 from a year earlier, according to Carsalesbase. And at the end of last year, German brand cars were sold in China with a circulation of 2,164,946 units (17% less than in the previous year). VW’s position in this market will probably be strengthened by another deal with a local manufacturer, it could be Huawei.
According to the German publication Manager Magazin, the German concern Volkswagen has been negotiating with Huawei for several months: it is assumed that following the results, VW will buy a subsidiary of the Chinese IT giant. We are talking about the division that develops automotive technologies for autonomous control.
Huawei aims to develop a level 5 autopilot for passenger cars by 2025. Now some models are equipped with a third level autonomous driving system. The division of the IT giant is gradually moving towards its goal: for example, in September last year, a “level 3.5” unmanned technology system was introduced, as the manufacturer designated it.
Now Volkswagen is developing unmanned technologies, this work is carried out jointly with Argo AI (including collaborated with Ford). In the future, the manufacturer intends to use these developments in the form of lidar systems to equip future commercial vehicles. In the event that a deal with Huawei is nevertheless concluded, the manufacturer will be able to subsequently create using these technologies to create “cars of the future” with a full-fledged autopilot, which the head of the concern Herbert Diess recently spoke about. He believes that the development of such transport should be expected over the next 25 years, and as a result, this will reduce the number of road accidents to zero.
There is no estimate of the amount of the deal between Volkswagen and Huawei yet, according to foreign media, the purchase of a subsidiary of the Chinese holding could cost “billions of dollars.” Earlier it was reported that the IT developer is collaborating with such “celestial” automakers as BAIC, GAC and Changan.
Recently, Herbert Diess also reminded that Volkswagen continues to work on an entry-level electric car, whose price tag will be about 20 thousand euros (equivalent to about 1.75 million rubles at the current exchange rate). Recall that the harbinger of this model is the ID.Life concept city car, which debuted at the Munich Motor Show in September last year. The serial compact car will appear in 2025.
In addition, the head of the VW concern hinted at the possible appearance of a full-size electric pickup truck in the American line of the brand, which will compete with the Ford F-150 Lightning and Chevrolet Silverado EV. Both of these models are already presented, but have not yet gone on sale. There are no details about a possible future Volkswagen green truck yet. It is also too early to talk about the probable timing of the appearance of new items.