How software automakers opens the door to new business models

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How software automakers opens the door to new business models-models

The Volkswagen brand is in the most profound change of its history. After e-mobility, the software becomes the second major Gamechanger. Development Council Thomas Ulbrich and Sales Management Board Klaus Zellmer have explained in a VW self-published interview how this transformation should succeed.

Volkswagen builds parallel to an electric car family ID The software for core competence, since digital strengths “become an increasingly important purchase argument” as sales board Zellmer explains. Anyone who does not offer the same digital networking as the consumer electronics as a car manufacturer, have “actually lost”. VW has shown in recent years that “the e-mobility from the niche into volume” has made a blemish, such as development board Ulbrich declared. “Another challenging process is in front of us in the further digitization of our vehicles. This is not a sprint, but a demanding marathon, “says VWS Chief Developer.

There are more and more challengers like Tesla and large tech corporations as new competitors of established automakers. The latter, however, do not remain idle as Ulbrich explains. VW is “already on the way from the hardware company to the integrated supplier of hardware, software and mobility services”. The close cooperation with Volkswagen’s new software unit Cariad also helps, “which makes us faster and dramatically increases the in-house competence,” said Ulbrich. Volkswagen would also be “transforming in a pure tech giant. That would not be good”. The goal is rather, to connect the best of two worlds: “Safe automobile hardware and progressive software solutions.”

“We will change the market massively”

In addition, the comparison with the new competitors, as Zellmer says, “Companies like Tesla have started their business almost on the green meadow”, and have completely different requirements. Volkswagen as a volume manufacturer in turn have different strengths and can, for example, achieved high quantities “Group-wide enormous cost advantages”. The Volkswagen brand alone sells around 6 million cars each year. “We will change this tremendous portfolio in electronics in the coming five to eight years and thus massively change the market,” says Volkswagen Sales Management Board.

VWS New electronics architecture consisted of initially two networked high performance calculators, as Chef developer Ulbrich explains: These two computers take on functions that are distributed in other vehicles on many control units, which the VW platform “powerful and clever” make. The new architecture allows for the first time at Volkswagen far-reaching over-the-air updates. Zellmer complements that customers in this way “keep the software of their vehicles up-to-date and even get completely new functions on board”. When smartphone or other manufacturers like Tesla, this is already everyday life and also in the car generally “over-the-air updates will be the new normality,” says Zellmer.

VW wanted to offer “a highest level of security” as it is “finally something completely different, whether you send an update to a smartphone or a car. If the smartphone update goes wrong, you can no longer call in the worst case. In the car, however, nothing can go wrong, it must perfectly brake, steering and blinking “.

The next milestone, or. How Ulbricht says a “crystallization point of change”, will be 2026 the trinity, “a completely new high-tech electric vehicle. It will offer high ranges, fast charging and an extremely high degree of digitization, “promises Volkswagen’s development board. The foundation for this is the already mentioned software architecture, which will be permanently developed.

“We expect additional annual revenues in the three-digit million area”

Intelligent software also open the door to new business models, according to sales board Zellmer: “In the future, more and more people will book a car for special occasions – for the weekend trip, furniture transport or camping”. When changing cars, it will be “self-evident, to take individual attitudes – about the individual seat setting or the personal favorite music,” he says about driving in the future.

Some software functions could only be booked, for example, if they are actually needed, such as a driving assistant for the long route on vacation. For VW as a company, these Functions on Demand “a tremendous value added potential”, says Zellmer. The manufacturer calculates “with additional annual revokes in the three-digit millions”.

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3 thoughts on “How software automakers opens the door to new business models”

  1. Good for the manufacturers, bad for the customers.

    I already see my butt refrain, because in the evening the 3-month package for the seat heating has expired.

    Reply
  2. Maybe VW should first bring the exhaust scandal in the US from the Supreme Court to a good end, then you will see how much money is left to the 10.000 Software engineers to pay, which are supposedly to equalize the projection of the “competitors” – stupid only that you can not buy a temporary time – Old sins seem to catch up again and again &# 128521;

    Reply
  3. My goodness, they have fallen from the time? First of all, you should think of all the id.X upgrade cars with hardware that does not use software updates notabene in the workshop! sleep!

    Of which competence dose the there? Except that you are able to bring peckers decently together? I do not cover what arrogance from their statements to one there!
    Quote from this message:

    “Only the Volkswagen brand sell around 6 million cars each year. “We will change this enormous portfolio in the electronics in the coming five to eight years and thus massively change the market,” says Volkswagen “

    Why should that be an advantage? These were all burners. That’s all past! Once again they want to be those who “change the market massively” ?
    The market is currently being massively changed! Not only 2026! If that should be the strategy of VW, then good night.

    Reply

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