Cariad, Volkswagen's software division, announced a joint venture with Chinese technology provider ThunderSoft for connectivity and infotainment systems in China, with ThunderSoft holding a 51% stake.
"Our strategic efforts are focused on the needs and requirements of Chinese customers," said Ralf Brandstaetter, chairman and CEO of Volkswagen Group China.
Cariad will be a minority shareholder in the joint venture, with a 49% stake, in contrast to its 60% stake in its other joint venture in China with Horizon Robotics to develop a single chip for autonomous driving technology.
The collaboration with ThunderSoft will result in the development of software products for the car's cockpit, infotainment systems, and cloud development - consumer-facing areas where carmakers are competing to differentiate themselves and retain control over valuable data on consumer behaviour.
According to its website, the Chinese company, headquartered in Beijing and founded in 2008, has joint ventures with Qualcomm, Arm, and Intel.
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