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Volkswagen is pushing ahead with plans to radically re-invent both the car itself and the software that controls it and allows its users to connect to it. At a press conference in Berlin, Jürgen Stackmann, Volkswagen Brand Board Member for Sales, said that starting with the battery powered I.D. models in 2020, Volkswagen cars will increasingly become a hub for the 'Internet Of Things.'
What does all that mean? "Our customers will become part of an ecosystem that we have named 'We'. This system complements the Volkswagen experience on wheels and enables customer to take their world into their vehicle" said Stackmann. To an extent, this already happens any time you connect your phone, via Bluetooth or a cable, to your car but the idea behind We is not just to increase and expand that connectivity, but to enable users to develop their own software, which can be contributed to the We platform, much as Apple already does with its OS software and the app store.
This isn't just a software blitz, either. According to Michael Jost, Chief Strategy Officer of the Volkswagen Brand and Head of Group Strategy Product: "To deal with this development, we need to reinvent the automobile in some ways."
What Jost means is that the software that's used in the car will have to become much simpler and more integrated. According to Jost, currently cars can use as many as 70 different electronic control units, all running different device-specific software. To change that, Volkswagen is going to develop the "vw.OS" automotive operating system. As Jost explained, "separating the hardware from the software lays the groundwork for continuous updates and upgrades."
It will also mean a change in the way Volkswagen communicates with its customers. From 2020, Volkswagen wants all new vehicles that it makes to be fully network-ready, able to communicate over the internet to both provide the driver with information and entertainment, and also to allow over-the-air software updates. It will go further, though, meaning that through its "One Digital Platform" cloud service, Volkswagen will be able to communicate directly with its customers through the in-car software, bypassing the dealer networks. Dealer contracts have already been re-drawn to allow for this.
"Volkswagen is spearheading the development of the OPD in collaboration with the Group brands. And we are seeking additional external support. We will soon be announcing cooperation projects and partnerships", Christoph Hartung, Head of Digital & New Business / Mobility Services at the Volkswagen brand, said.
The plan is to invest some €3.5-billion into this new digital motoring landscape by 2025, and that, says Volkswagen, will be the beginning of its transformation from a conventional car maker into a "a mobility service provider with a connected fleet." That €3.5-billion investment is expected to return "sales revenue running into billions from digital offerings and services" says Volkswagen.