Volkswagen to Ramp Up Software Development

German automaker Volkswagen (VOW.DE) outlined plans to increase in-house software development over the next six years as it seeks to achieve “tremendous cost advantages” through the creation of a standard vehicle operating system.

The Wolfsburg-headquartered company, said that it plans to develop significantly more software in the car and for vehicle-related services itself and to boost the in-house share of software development from the current figure of less than 10% to at least 60% by 2025.

Volkswagen intends to group more than 5,000 digital experts together in its new Car.Software unit with group responsibility for software in the vehicle by 2025.

In future, there is to be one uniform software platform with all the basic functions for all vehicles throughout the group, Volkswagen said. It said that this would consist of the vehicle operating system, “vw.os,” and the Volkswagen Automotive Cloud. By 2025, all new group models are to run on this software platform, the company added.

“We are platform professionals for hardware and are now transferring this competence to software development,” said Christian Senger, a member of the management board responsible for Digital Car and Services. “We will develop software with uniform basic functions for all group brands, which will allow us to drastically reduce complexity. In the medium term, we will benefit from the scale effects of our group. This is especially meaningful in the software field and will lead to tremendous cost advantages,” he added.

Currently, up to 70 control units with operating software from 200 different suppliers need to be integrated in Volkswagen brand vehicles. In addition, there are different systems with similar functions within the group, for example for infotainment and navigation, the company said.

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