Volkswagen's digital labs are busy developing their own car software. Source: macom GmbH
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Volkswagen wants to develop its own automotive software

Raphael Knecht
16.7.2019
Translation: machine translated

The German carmaker is working on new software at the Digital Lab in Berlin. This in-house creation should supplant software from giants such as Google, Apple and Microsoft.

In the future, VW wants to develop its own software and thus declare war on the established players in the sector. Reversing the dominance of Apple, Google and co. in car software is bound to come from a final product developed by the German company's own digital labs - it has seven in all - which carry out intensive research and programming in Berlin. According to a report drawn up by Handelsblatt, a German daily specialising in business journalism, desoftware developers must help turn Volkswagen - a car group steeped in tradition - into an IT-oriented company.

The browser, the grey area

The obsolescence of most in-house products made by carmakers has motivated IT giants to make their way into the small world of automotive software. This is because in-house navigation systems have outdated maps, are complicated to use and offer fewer features, thus forcing automotive groups to think of a way to impose themselves. As a result, drivers are increasingly turning to mobile phones, including for their music. The VW Group is not (yet) in a position to produce "its" software on its own: to start with, it intends to develop around 60% of all automotive software in-house.

In software development, the Germans from Wolfsburg have until now been operating on shaky foundations. For example, the cooperation with Aurora - a specialist in autonomous driving - ended after just six months. The software developed by former Google and Tesla employees apparently failed to convince the Lower Saxony firm. Volkswagen - in collaboration with Ford - is now relying on their new partner, Argo AI, a startup working on autonomous vehicles.

US$2.6 billion has reportedly been invested in the deal, including $500 million for Ford. However, one question remains: what's going on at VW with all the other money that's been pumped into research and development? According to a report by Spiegel - a German investigative magazine - Volkswagen invested almost $16 billion in these areas in 2018, a huge sum that would have been used mainly for artificial intelligence and 4.0 technologies. It's doubtful this will do any good. According to the magazine, the external perception of innovation at VW is also very different, with the German carmaker not described as a figurehead in this area.

The fear of the big guys

Software, control units, processors and mini-computers increasingly make up the central console and therefore the brain of today's vehicle. Until now, carmakers only called in external support if the complexity of the software exceeded their own area of expertise. As a result, Microsoft, Google and Apple have easily made their way into the automotive world.

Navigation devices are just one example of how carmakers are lagging behind international IT players in terms of technology. Very few in-car GPS units offer notifications of traffic jams or construction work. If they do, then updates are difficult and expensive. No wonder people resort to smartphones.

But Volkswagen has put its finger on this problem and wants to do something about it. Even if no one in VW's Wolfsburg workshops has openly stated it, vehicles should soon be free of Microsoft, Google and Apple.

The problem has been identified by Volkswagen.

Header image: Volkswagen's digital labs are busy developing their own car software. Source: macom GmbH

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When I'm not stuffing my face with sweets, you'll catch me running around in the gym hall. I’m a passionate floorball player and coach. On rainy days, I tinker with my homebuilt PCs, robots or other gadgets. Music is always my trusted companion. I also enjoy tackling hilly terrain on my road bike and criss-crossing the country on my cross-country skis. 

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