VW is in talks with Ecarx, a digital cockpit system developer to integrate the Chinese company’s technologies in cars it sells in developed markets, which includes Europe. On Monday, Ecarx’s CEO confirmed that the company is in talks with Volkswagen to integrate new technologies in the cars for the European market. However, VW and Ecarx are already in partnership to produce smart cars in India and Brazil with the digital cockpit system Antora 1000.
The Ecarx’s Antora 1000 features its proprietary chip and software and offers services such as voice recognition and navigation maps. Ecarx is backed by Geely’s Chairman Eric Li. As per a Reuters report, Ecarx CEO Shen Ziyu said that the two companies are now aiming to expand their partnership to include VW’s Skoda cars sold in Europe.
Ecarx and VW Partnership: Smart Car Technology
Ecarx CEO Shen Ziyu explained that the project involves delivering hardware and software for the intelligent cockpit system, mainly for VW’s factories in Brazil and India, with plans for Europe’s Skoda market in the future. The platform is called the Global Entry Infotainment Platform.
While Ecarx has discussed entering the U.S. market, it is not currently part of the VW deal, though Ecarx products are already in U.S. cars from Volvo and Lotus, both owned by Geely. The company clarified that these discussions are related to their global market strategy, not the EcarX VW partnership.
Rising Demand for Chinese Technologies Among Automakers
The plan highlights Western automakers’ growing efforts to use Chinese smart-driving technology to maintain global market share, especially after recent sales drops in China. Now, almost all major car brands face competition from Chinese electric vehicle makers, who have revolutionized the industry with stylish, tech-rich cars.
German luxury brand Mercedes-Benz aims to develop smart-driving cars for global markets, using Chinese company Hesai’s lidar sensors. This marks the first time a foreign automaker will use Chinese-made tech for cars sold outside China.
Future of Volkswagen’s In-House Software
Volkswagen’s in-house software unit, Cariad, has had limited success so far. The company plans to cut nearly 30% of its staff by the end of the year, according to a report from Handelsblatt. Shen explained that it took over a year for Volkswagen to choose a smart technology supplier from 13 contenders, including South Korean companies like LG and Samsung, as well as Chinese rival Desay SV.
He added that R&D for consumer electronics, especially semiconductors, is still mainly based in Asia, which is why developing software capabilities in Europe has been slow.
Volkswagen Stock Update
Volkswagen’s stock has seen some fluctuation recently. On March 17, the stock opened at EUR 156.22, but by the end of the day, it closed at EUR 153.89, marking a decrease of around 1.5%. This dip follows recent challenges with the company’s software unit and ongoing shifts in its strategic direction.
