VW steps up software push with 'vw.os' operating system

Volkswagen is stepping up the pace of its digital transformation with a plan to pool some 5,000 digital experts into a single unit that will develop "vw.os," a uniform software operating system.

With the creation of the Car.Software unit, Volkswagen's in-house development will rise to at least 60 percent by 2025 from less than 10 percent now, VW said on Tuesday.

"We are platform professionals for hardware and are now transferring this competence to software development," Christian Senger, head of digital car and services for the VW brand, said in a statement.

"We will develop software with uniform basic functions for all group brands, which will allow us to drastically reduce complexity," Senger said.

VW said all its new models would use the "vw.os," platform and the Volkswagen Automotive Cloud by 2025.

VW CEO Herbert Diess has mapped out a "massive expansion" in software and digital investments, and the automaker earlier this year started the rollout of the industry’s biggest automotive cloud with strategic partner Microsoft.

The first vehicle based on vw.os will be the ID3 battery-powered compact hatchback, which will arrive in European dealerships next year. From 2025, all new models will use the the system, VW said.

Currently, as many as 70 control units with operating software from 200 different suppliers need to be integrated into VW brand vehicles, while the group uses different systems with similar functions, such as for infotainment and navigation.

Reuters contributed to this report