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Podcast: Breaking Down VW-Horizon Deal in China

We spoke with Tu Le, managing director of Sino Auto Insights, about the winners and losers emerging from Volkswagen's joint venture with China's Horizon Robotics.

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By Junko Yoshida

When news broke that Volkswagen was making 2.4 billion euro investment in China’s Horizon Robotics, Tu Le, managing director of Beijing-based consultancy Sino Auto Insights, told us, “The German automaker has no way to compete with Tesla save by partnering with China.”

Horizon is China’s national champion in AI software and hardware. Was it a good idea for Volkswagen to outsource its software and hardware future to China? The deal could help VW in the short term with its software development in China, but what’s the implication a decade from now?


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