Volkswagen continues to invest: the surprising partnership it can sign

The car industry is full of rumors, and this time Volkswagen and Huawei are in the middle.

VW is said to be in talks with Huawei to acquire a self-driving unit.

The Volkswagen Group is in talks with Huawei in China to buy a self-driving unit, a German business magazine said.

VW executives have been negotiating the agreement for several months, which involves technological systems in which VW is not yet involved, Magazin reported, citing inside sources.

Automakers and technology companies are investing billions of dollars in self-driving, aiming to take over early driving in what many see as the future of mobility.

Huawei aims to develop driverless car technology by 2025, said Wang Jun, the company’s executive director of smart vehicles, last year.

VW CEO Herbert Diess said he expects the automotive industry to see widespread self-management within 25 years and that the company is looking for new partnerships to increase its software self-sufficiency.

The problems continue for the Germans

At the same time, Herbert Diess warned of several production cuts due to the chip crisis at its main plant in Wolfsburg amid growing tensions over how to adapt the plant to the electric era.

While VW has made progress in managing the global blockage of components, the situation at its German headquarters in Wolfsburg remains a challenge, Diess said during a workers’ rally on Wednesday.

“Wolfsburg is badly affected by the state of semiconductors,” Diess said. “Capacity adjustments are therefore needed in the medium term as well.”

He added: “The supply situation is improving, but in 2022 we will not be able to build all the cars we could sell. But we see opportunities for further production growth, especially in the second half. “

Diess said VW has introduced an early warning system for possible failures, and the company’s software developers have already introduced 150 technical alternatives in cars to replace the missing chips.

The Wolfsburg plant will produce about 570,000 vehicles this year, said company board chief Daniela Cavallo.