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FinanceVolkswagen's CARIZON deepens self-driving partnership with Horizon Robotics, targets L3 deliveries in H2 2027
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Volkswagen announced on July 22, 2026, that its China-based automated driving unit CARIZON will deepen its partnership with Horizon Robotics to accelerate development of advanced self-driving technologies. The agreement gives CARIZON access to Horizon Robotics' AI foundation model, enabling faster development of Level 3 (eyes-off) and Level 4 (driverless) capabilities. Deliveries of Level 3-enabled models are expected to begin in China in the second half of 2027. Volkswagen is also rolling out Level 2++ urban assisted driving across its China models this year. The move is part of Volkswagen's strategy to keep pace with Chinese brands by leveraging local tech advantages. Additionally, Volkswagen has partnered with Chinese EV maker Xpeng to develop a new electronics platform, which will integrate with the AI self-driving system. Volkswagen plans to export from China to markets like the Middle East, Central Asia, and Southeast Asia as the Chinese market slows.
Source report
By Rachel More
BERLIN, July 22 (Reuters) – Volkswagen announced on Wednesday that its China-based automated driving unit, CARIZON, will deepen its partnership with Horizon Robotics to accelerate the development of advanced self-driving technologies.
Under pressure to keep pace with Chinese brands, Volkswagen and other European automakers have increasingly shifted technology development to the world's largest auto market, leveraging China's growing advantage in areas such as electric vehicles and advanced software.
Volkswagen stated that its latest agreement with Horizon Robotics grants CARIZON access to the Chinese company's AI foundation model, enabling the German automaker to build its own AI-driven driving solutions more rapidly. This includes:
- Level 3 capabilities, where the driver can take their eyes off the road.
- Level 4 capabilities for robotaxis, which do not require a driver.
Tech Strengthens Competitiveness in China
Deliveries of Level 3-enabled models are scheduled to begin in China in the second half of next year, Volkswagen said in a statement.
The company also plans to begin rolling out so-called Level 2++ technology for urban assisted driving—an increasingly standard feature in the region—across its China models this year.
CARIZON Chairman Peter Bosch hailed the expanded partnership as:
"A powerful example of how we combine advanced AI technologies with strong in-house software and systems engineering, while scaling solutions across architectures and vehicle platforms."
Volkswagen CEO Oliver Blume said the move would:
"Reinforce our competitiveness in China, and open up new opportunities in selected international markets."
Alongside its partnership with Horizon Robotics, Volkswagen has also collaborated with Chinese EV maker Xpeng to develop a new electronics platform for their models in China. This platform will be closely integrated with the new AI-enabled self-driving system, enabling broader deployment as Volkswagen looks to export from China to markets such as the Middle East, Central Asia, and Southeast Asia amid a slowdown in the Chinese market.
(Reporting by Amir Orusov and Rachel More; Editing by Ludwig Burger and Jan Harvey)
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Volkswagen's CARIZON and Horizon Robotics Deepen Self-Driving Partnership in China