Please ensure Javascript is enabled for purposes of website accessibility

Volkswagen Unit Forms Partnership for Self-Driving Trucks

By Howard Smith – Sep 23, 2020 at 12:18PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The deal includes an investment in California-based start-up TuSimple.

Volkswagen (VWAGY 2.50%) announced today that it has joined forces with autonomous-vehicle start-up TuSimple to bring self-driving heavy-duty trucks to Europe. VW's truck unit, Traton Group, also bought an undisclosed minority stake in the California-based company. 

This isn't the first deal TuSimple has made with a major truck manufacturer, and there is a connection among all of the parties. 

self-driving semi truck image with images from sensors surrounding it

Image source: Getty Images.

TuSimple already has a partnership with truck and bus manufacturer Navistar International (NAV), which invested in the company, and also plans to collaborate on manufacturing autonomous semi trucks. Traton Group owns 17% of Navistar, and recent reports have said it may be looking to add to that ownership stake. 

TuSimple already operates autonomous-truck hauling routes between Arizona and Texas in the first phase of its autonomous freight network. Phase 2 and 3 include plans to grow the network nationwide by 2023. 

The deal with Traton will be the first to bring its technology to Europe. Initial testing will use Scania trucks for a hub-to-hub route in Sweden. The test vehicles plan to use TuSimple's Level 4 technology, "which can achieve full automation without human intervention under defined driving conditions and applied in all markets," Traton said.

TuSimple was founded in 2015 and has about 45 trucks, the largest fleet of autonomous trucks operating in the U.S. The partnership "accelerates the introduction of autonomous truck technology to new international markets," said TuSimple president Cheng Lu.

Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Nearly 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Volkswagen AG (ADR) Stock Quote
Volkswagen AG (ADR)
$19.24 (2.50%) $0.47
Navistar International Stock Quote
Navistar International

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/01/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.