In 2018, Volkswagen announced that it was undertaking a project that no other automobile manufacturer had yet dared to do. It announced a strategic partnership with Microsoft to develop a Volkswagen digital ecosystem--a dedicated automotive industry cloud that was smart and scalable, delivering connected experiences to customers around the world. Volkswagen has underscored its commitment to digital development by doubling its spending to approximately $28 billion over the next five years. The culmination will be Volkswagen's own end-to-end software platform that includes the Volkswagen Automotive Cloud (VW.AC), an in-car operating system, and capabilities that enable the next generation of infotainment, vehicle performance, passenger comfort, and yes, automated driving.
Autonomous driving is one of Volkswagen's big plans for its digital ecosystem. It goes beyond just autonomous driving capabilities on passenger vehicles, which is already well underway. Volkswagen is eyeing shared mobility vehicles, such as shuttles or taxis, to operate as a commercial service throughout Europe closely followed by a rollout in North America. For autonomous driving on passenger vehicles, Volkswagen is laying the technological foundations for it with the Automotive Cloud. They have laid the gauntlet down to be considered the company to beat. The company is eyeing a future where people can get into their car, say where they want to go, and be driven there automatically.
Initially, the Volkswagen Automotive Cloud will benefit drivers by enhancing existing services, such as emergency assistance and remote vehicle access. For instance, electric vehicles will sync with a driver's calendar to begin warming up as they charge to offer a perfect cabin environment for when a driver needs to get into the vehicle to drive to their destination. The VW.AC will also lay the foundation for new services like intelligent navigation and smart parking. In electric vehicles, the Automotive Cloud could power an in-car navigation system that reduces a driver's range anxiety by providing charging station locations and recommended stops. In addition, the VW.AC could compile all the driving and battery data generated by its electric vehicles to help develop batteries with longer range and higher performance.
Behind VW.AC and the digital ecosystem lives complex artificial intelligence that will take on many of these tasks in the future. A digital assistant will be a large part of the user experience, but Volkswagen has not reached that point yet. For VW, it is important that the foundation is laid and that the digital services and offers are standardized before changing the fundamental way things are done.
Volkswagen's objective with its digital ecosystem is to develop, build, and sell excellent vehicles to its customers. By offering a continually growing universe of digital services and offers for those customers, Volkswagen will provide an experience unlike any other car manufacturer. Volkswagen wants to be an integral part of the technology and services provided in its vehicles. Instead of relying on software firms to provide 90% of the technology located in its vehicles, Volkswagen wants to be the creative mind behind those innovations. Instead of focusing on simply the hardware of the vehicles, the VW.AC will have the resources to provide both hardware and software.
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