The joint venture will reportedly focus on developing self-driving technology and wireless connectivity software for Volkswagen.

(Image credit: Horizon Robotics)

Volkswagen plans to invest 2 billion euros ($1.94 billion) in a joint venture with Horizon Robotics, a China-based provider of computing solutions for advanced driver assistance systems (ADAS) and autonomous driving (AD), German media outlet Manager Magazin reported Wednesday.

The stake is intended to bring Volkswagen closer to the digital competition and at the same time enable technological independence from the rest of the world, the report said, adding that this could be announced within days.

Separately, Bloomberg said Wednesday, citing people familiar with the situation, that Volkswagen is close to reaching a joint venture deal with Horizon Robotics in which the auto giant could invest about $1 billion.

The joint venture would focus on developing self-driving technology and wireless connectivity software for VW, according to Bloomberg's report.

Volkswagen operates a number of joint ventures in China, with a 75 percent stake in a joint venture with JAC, a 50 percent stake with SAIC Group and a 40 percent stake with FAW Group.

Horizon Robotics was founded in 2015 with backers including Intel, Hillhouse Capital and BYD.

The company has launched a series of automotive-grade professors since 2019.

On September 30, Li Auto's new SUV, the Li L8, was launched, the first production model to feature the Journey 5 processor.

To date, Horizon Robotics has shipped more than 1.5 million units in its Journey series, with supply agreements with more than 20 car companies covering more than 70 models, according to a statement from the company late last month.

On October 10, Hozon Auto's electric vehicle brand Neta Automobile made the Neta U-II electric SUV officially available in China as a successor to the previously offered Neta U.

Neta used the Qualcomm Snapdragon 8155 chip, normally used only in flagship electric vehicles, in the inexpensive Neta U-II, with an assisted driving system built on Horizon Robotics' Journey 3.