Traton Group, Volkswagen AG's heavy truck business, acquired minority stake in TuSimple as part of an agreement between the two companies for the development of self-driving trucks.
None of the companies disclosed the financial terms of the partnership or the percentage of the minority stake. Traton made a direct equity investment in TuSimple, according to an unnamed source familiar with the deal. It is unclear whether it also included in-kind contributions.
Traton's investment is not part of TuSimple's recent effort to raise $ 250 million in a Series E round. The raton group has a chance to participate in the round.
The two companies outlined plans Wednesday to launch a development program that will use Traton's Scania trucks equipped with TuSimple's automated vehicle technology. The companies said testing will begin with a route between Södertälje and Jönköping in Sweden. Finally, the trucking manufacturer wants to test fleets of driverless trucks on roads in Sweden, Germany and other countries.
The companies did not provide details on the scope of the program or timing, other than plans to "work closely" to develop autonomous level 4 systems for Traton brand trucks. Specifically, Traton said the goal is for these trucks to have Level 4 capabilities, which they define as capable of "achieving full automation without human intervention under defined driving conditions applied across all markets."
Traton said this could serve as a means of countering the growing shortage of drivers in the medium term. The first cases of deployment could be conducted outside of specially demarcated areas, particularly for highly frequented hub-to-hub routes, Traton said in his announcement.
The partnership will expand TuSimple's self-driving vehicle operations beyond the United States and China to Europe. The startup, which is supported by Sina, Nvidia, UPS and Tier 1 supplier Mando Corporation, operates a fleet of 40 self-driving trucks in the United States that are used for testing and to transport cargo between Arizona and Texas. The company, launched in 2015 and has offices in China, San Diego and Tucson, Arizona.
The partnership also strengthens the link between Traton, TuSimple and Navistar. In July, TuSimple announced plans to develop and begin manufacturing autonomous semi-trailers by 2024 in partnership with Navistar. The plan is to move away from the retrofit of Navistar International commercial trucks currently used by TuSimple and instead develop semi-trailers designed specifically for autonomous operations. The strategic partnership included Navistar acquiring an undisclosed stake in startup TuSimple.
Meanwhile, Traton holds a 16.6% stake in Navistar, which it acquired by buying $ 256 million worth of shares in September 2016. The two companies could end up getting closer. In January, Traton made an unsolicited offer to buy the remaining Navistar stock it does not own for $ 35. Traton increased its offering this month to $ 43 per share, or about $ 3.9 billion, Bloomberg reported earlier this month.
