Baidu last year opened the Apollo consortium, which uses an open-source approach, to third parties to accelerate development of autonomous vehicles in the face of stiff competition from Google's Waymo and U.S. carmaker Tesla.

Volkswagen will gain a seat on the management board of Apollo, the carmaker said.

Apollo has brought in more than 130 partners, including Germany's BMW, and announced plans to begin testing self-driving cars with Ford by the end of this year.

The news comes as Volkswagen explores a broad based partnership with Ford to develop electric and autonomous cars.

(Reporting by Edward Taylor; Editing by Michelle Martin and Douglas Busvine)