German automotive sector generates hope
The Ifo Institute reports that the automotive sector is more optimistic about the future again – VW is relying in China on its own AI chips.
Munich /Shanghai (dpa)– The mood in the German automotive industry has significantly improved. The Ifo Institut in Munich reported that the business climate index for the sector rose by 8.4 points in October. At minus 12.9 points it remains in negative territory, but is in a much better position than at the beginning of the year when it temporarily fell to below minus 40 points.
“Business expectations in the automotive sector in particular have brightened considerably”, said Ifo expert Anita Wölfl. They leapt from minus 22.1 to minus 3.9 points – higher that at any time in the last two years. The reasons for this are increased demand, high capacity utilisation and improved export expectations.
Volkswagen is providing technological impetus. The company will in future develop its own AI chips in Shanghai in the race for autonomous driving. This involves VW assuming “control of a key technology that will determine the future of intelligent driving”, said CEO Oliver Blume at the China International Import Expo.
Carizon, a joint venture between VW software subsidiary Cariad and Chinese specialist Horizon Robotics, is expected to deliver the chips in three to five years. They will process data from cameras and sensors to enable level three driver assistance systems – i.e. semi-autonomous driving.
This announcement comes amid concerns regarding global chip shortages. China’s export bans and the dispute over Dutch manufacturer Nexperia have exposed European carmakers’ dependence on Asian supplies. VW wants this in-house development to make it more independent and help it catch up technologically in the world’s most important car market.
