Exclusive-China's Ecarx explores US entry, in talks with VW to develop smart cars for Europe, CEO says
Volkswagen already has a partnership with the firm, which is backed by Geely Chairman
The two companies are now looking to extend the partnership to include VW's Skoda-branded cars sold in
"The whole project is about the delivery of the hardware and software of the intelligent cockpit system, mainly in VW's
Asked whether Ecarx products had been delivered to the U.S., Shen said there had been discussions. "Under the current VW deal, they do not currently have this scope. But we have already discussed this and are discussing how to enter the U.S., this is under discussion," Shen said, adding Ecarx products have entered the U.S. in Volvo and Lotus cars. Both brands are owned by Geely. Ecarx followed up on Friday to say Shen was referring to the company's internal technical feasibility discussions of markets globally and not the Volkswagen partnership.
Skoda declined to comment.
A Volkswagen AG spokesperson said the company's cooperation with Ecarx was solely focussed on the delivery of an infotainment system for its internal combustion engine vehicles in
"We do not comment on supplier selection or any contractual details. However, we can confirm that
The plan underscores growing efforts by Western automakers to leverage Chinese prowess in smart-driving technologies to hold onto their global market share after sales declined sharply in
Nearly all legacy auto brands now have to contend with Chinese electric vehicle makers, which have upended the auto industry with sleek software-rich cars.
German luxury automaker Mercedes-Benz plans to develop smart-driving cars for global markets equipped with Chinese firm Hesai's lidar sensors, Reuters reported on Tuesday, the first time a foreign automaker has sought to use such Chinese-made technology for models sold outside
Shen said it took more than a year for Volkswagen to decide on the smart technology supplier among 13 other candidates that included South Korean brands, such as LG and Samsung, as well as Chinese rival Desay SV.
"The R&D for the entire technologies of consumer electronics, including semiconductors, is still rooted in
Volkswagen has had limited success so far with its in-house software unit Cariad, which plans to lay off almost 30% of staff by the end of the year, the Handelsblatt business daily reported on Tuesday, citing company sources.
Ecarx generates 70% of its revenue from Geely and its affiliated brands, and aims to lower its reliance on the Chinese group to below 50% by as early as 2028, Shen said.
Half its revenue would come from overseas by 2030, as Ecarx has been building its R&D teams abroad, a move Shen expects to help address concerns over geopolitical risks involving the use of Chinese technologies.
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(Reporting by
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