Huawei has what VW wants

Autonomous driving is far from being a reality in Germany. Nevertheless, VW aims to quickly close the gap in automated driving at Levels 4 and 5. Level 4 vehicles are fully automated, without the need for drivers to take over. Level 5 refers to when the vehicle can handle complex situations at intersections and crossings on its own. Consequently, there are no longer drivers, only passengers—or even trips without occupants. However, the legal framework for Level 5 is far from being established.

VW primarily seeks highly specialized experts

For several months now, Volkswagen has been negotiating with Huawei to acquire the relevant subsidiary with approximately 700 employees. However, according to a report by "Manager Magazin", the heart of the company lies in its 50 highly specialized experts. So far, the deal has failed due to widely differing price expectations—ranging from a low to a high single-digit billion amount. The Wolfsburg-based company is concerned whether the specialists would remain with the company after the acquisition. Additionally, Huawei is not granting VW the necessary insights into the technology required for such a deal.

VW has established its own center for automotive software development in China with Cariad. The company consolidates the work on a unified software platform for all passenger car brands of the Volkswagen Group there. The Chinese branch of Cariad is expected to be strengthened by the acquisition from Huawei.

Volkswagen's "Golden Times" in China Are Long Over

There was a time when motorized China was largely on the move with VW Santana. Nowadays, the Wolfsburg residents have major problems in the Chinese market. Compared to domestic manufacturers, VW's electric models are falling behind. The Chinese vehicles are more innovative, have better ranges, and are far ahead in software and connectivity.