VW Eyes 2028 Debut for Software-Defined Vehicles, CEO Says

Volkswagen Group is pushing forward with its plans to introduce software-defined vehicles, targeting a launch by 2028, according to CEO Oliver Blume. In a recent statement, Blume outlined the progress, stating, "We have already defined particular products, the project team has been appointed, and we also have [a software-defined vehicle] hub." He emphasized the collaboration with tech partners, indicating the automaker's commitment to innovation.

Blume highlighted the strategic timeline, indicating a focus on 2028 for the development of software-defined vehicles, particularly for Audi and Volkswagen brands. This timeline places VW Group's entry into the market two years later than Renault Group's anticipated debut in 2026.

The shift towards software-defined vehicles reflects a broader industry trend aimed at reducing development costs, enhancing customer loyalty, and increasing revenue. Research by consultancy Accenture suggests that by 2030, digital services could contribute up to $1.5 trillion in additional revenue to the automotive industry, reaching $3.5 trillion and comprising 40 percent of total automotive industry revenue by 2040.

However, Blume acknowledged the complexities inherent in this transition, requiring a fundamental reevaluation of vehicle development processes, supplier relationships, and corporate culture. To expedite this shift, Volkswagen is streamlining decision-making processes and fostering collaboration with major technology partners.

Within Volkswagen Group, Audi is positioned as a key player in the software-defined vehicle initiative. Audi CEO Gernot Döllner has appointed Lorenz Führlinger, a specialist in vehicle platforms, to spearhead Audi's involvement. Führlinger's expertise in upcoming SSP underpinnings is expected to drive Audi's endeavors in full-electric vehicles.

To expedite the transition, VW and Audi are leveraging VW Group's software arm, Cariad. Blume mentioned streamlining decision-making processes and a strategic shift towards collaboration with "big tech" partners, indicating a departure from previous strategies.

When questioned about potential partnerships, Blume hinted at a broader vision beyond software-defined vehicles, envisioning an "AI-defined vehicle." He also hinted at the possibility of licensing VW Group's technology to other manufacturers, drawing parallels with the success of the MEB full-electric platform, which has been adopted by companies like Ford Motor Co. and Mahindra & Mahindra.

Despite progress, challenges remain evident. Cariad reported significant operating losses attributed to upfront investments in future software architectures. However, with revenue from contract licenses on an upward trajectory, VW Group remains optimistic about the long-term viability of its software-defined vehicle initiative.