German auto parts maker ZF acquires stake in Chinese startup

German auto parts maker ZF has partnered with Chinese intelligent vision system provider CalmCar to develop automated parking and automated valet parking technologies, which are expected to be introduced into a Chinese carmaker as soon as 2022.

ZF said this is the first time it has acquired a stake in a local Chinese technology startup. But it did not reveal details about the amount of investment. ZF said the solutions they work on will have their debut in China and will serve both Chinese and global carmakers.

"For us it is an important move in doubling down on China, doubling down on the advanced technology," said Holger Klein, member of the board of management of ZF Group. "I wouldn't be surprised to see more such investment of ZF in the future," he said.

Klein made the remarks when ZF signed the strategic partnership agreement with CalmCar on Tuesday in Shanghai.

ZF can provide a full range of sensors and components for a scalable computing platform, and has corresponding solutions from sensor fusion to planning control execution algorithms to offer Level 2 and Level 3 systems.

It will collaborate with CalmCar to achieve agile development and thus speed up mass production for Chinese and international carmakers.

Klein said ZF's solutions developed with CalmCar will be suitable for all kinds of scenarios and make this technology more accessible for broad audiences.

He said the two companies will also use automated valet parking as a starting point to build future-oriented autonomous driving technologies.

Renee Wang, president of ZF China and senior-vice president of ZF operations for the Asia-Pacific region, said it is normal nowadays that time for a car model development is six to 18 months, instead of three to four years in previous years.

So it is essential to work with local startups so that they can respond fast to local carmakers' demands, she said. The partnership with CalmCar will accelerate ZF's localized R&D process and thus allow the latest technology to be introduced to the market more efficiently.

CalmCar was established in 2016. It was working with ZF for years before the agreement was inked on Tuesday.