Volkswagen's China-based automated driving joint venture Carizon is deepening its partnership with Horizon Robotics to accelerate development of advanced automated driving technology.

The German automaker said Wednesday that the collaboration would speed in-house development of levels 3 and 4 autonomous driving capabilities.

Level 3 automated driving represents technology that fully takes over steering, braking and acceleration under specific conditions, and while the driver doesn't have to keep their hands on the steering wheel, they have to remain ready to take control.

Level 4 refers to a fully self-driving system that requires no intervention from the driver, but is limited to specific areas, weather conditions and speed limits.

Under the extended partnership, Carizon will gain access to Horizon's artificial-intelligence foundation model, which is a core technology to develop advanced automated driving and will allow Volkswagen to build its own unified AI driving solutions faster.

Deliveries of level 3 capabilities are expected to start by the second half of next year.

Volkswagen Chief Executive Oliver Blume said the agreement will reinforce the automaker's competitiveness in China and open up new opportunities in selected international markets.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

July 22, 2026 05:36 ET (09:36 GMT)

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