BERLIN—Volkswagen AG said it would work with Microsoft Corp. to develop a new platform for digital services in its cars, the latest move by a major auto maker to embrace technology in the hope it will generate a lucrative stream of revenue in the coming years.
The deal announced Friday is the German car maker’s biggest step yet toward connecting its vehicles to the internet, paving the way for a vast array of in-car services—including streaming video, restaurant reservations and locating a repair shop on the road.
...