VW deepens cloud computing partnership with Microsoft

FRANKFURT — Volkswagen said on Wednesday it had struck a deal with Microsoft to cooperate on cloud computing as part of its drive to offer connected vehicle services across the globe.

By allowing vehicles to tap Microsoft's remote computer processors via the cloud, VW can offer its customers personalized on-board media streaming, and make suggestions for parking and charging.

VW said it will use its Automotive Cloud as the core of its vehicle and service data operations for its new I.D. electric cars, which are due to hit showrooms in 2020.

The automaker will expand Automotive Cloud's global footprint to China and the United States, VW said. Previously it has been developed mainly for the European market.

Microsoft Azure with its cloud, edge, AI and IoT capabilities will continue to form the basis of the growing digital ecosystem, VW said.

"We will be launching a new, high-performance software architecture in our vehicles. This will lay all the foundations required for the full networking of our vehicle fleet and for the development of digital added-value services for our customers," said Christian Senger, VW Group's Head of Digital Car & Services.

The Golf-sized I.D. Neo hatchback will be the first vehicle to use the Automotive Cloud. It will go on sale in Europe in 2020. Production is scheduled start in China the same year and VW will build a member of the ID. family at its U.S. plant in Chattanooga starting in 2022.

Automotive News Europe contributed to this report