Volkswagen New Auto: Software as a new money maker

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How the E3 2.0 software should open up new business areas for VW from 2025

Volkswagen New Auto: Software as a new money maker-money

Software platforms played an important role in the VW Group’s "New Auto" event. They were explained by Cariad boss Dirk Hilgenberg. Cariad is the Group’s software division founded in 2019 and has been operating as an independent unit since 2020. Among other things, it develops the Group’s own operating system VW.OS.

The first highlight from Cariad were the over-the-air updates for the ID models that were launched this month. The underlying software is referred to as E3 1.1. This is the software that runs on the current MEB cars such as the VW ID.4. The next generation 1.2 should be in the Porsche Macan Elektro and the Audi Q6 e-tron in 2023 start. There is already a start date for the 2.0 version but one: It will be used from 2025, first in the Audi model with the code name Artemis and then from 2026 in the VW model with the provisional name Trinity.

Volkswagen New Auto: Software as a new money maker-volkswagen

Version 1.2 should be based on Android Auto and contain an app store for software from other manufacturers, so that you can use your favorite programs for entertainment or messaging, says Hilgenberg.

The real revolution should come with version 2.0. This should come in all new models from 2025, regardless of whether it is a VW, Audi or Porsche. The software supports autonomous driving levels 3 and 4 and automated charging – probably what the charging provider Fastned Autocharge means: you connect the car to the column and the charging process begins; Authentication does not take place via card or app, but the car identifies itself.

Volkswagen New Auto: Software as a new money maker-maker

E3 2.0 also enables comprehensive uploads and downloads from the Automotive Cloud – also known as VW.AC, which is being developed in cooperation with Microsoft. This makes it possible to keep the software up-to-date and to implement functions on demand. For example, you will be able to book autonomous driving skills or even more electric range for your vacation, according to the Cariad boss. The income from this becomes a new source of income for the group.

In addition, the 10 million cars the company sells each year become 10 million data sources. This data can be analyzed and errors can be corrected via OTA updates – a cycle that VW calls the Big Loop Process.

More from the "New Auto" event: Volkswagen New Auto: Software as a new money maker-money Volkswagen New Auto: Finally, more clarity on the platforms

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Here is the entire event. The software part starts at 49:00:

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