Volkswagen expressed its interest in seeking partnerships with other carmakers in reference to sharing and developing software platforms. It was shared by VW’s CEO, Herbert Diess to German media. He said, “We are open to discussions and prepares to share our platform.” Later added that they do not rule out any other options like partnering with competitors like BMW or Daimler.
As per the German Media, Der Siegel, Diess said, “If Europe loses data sovereignty in the car business, then we will make ourselves completely dependent on high-tech companies from the US or China.” Indicated that the one-time costs for the development of software and other high-end technology are high. For developing software systems and software in the upcoming models include self-driving technology, which needs various tests and research before being released into the market.
Interestingly in the recent IAA auto show, BMW development Board Member Frank Weber already called three major automakers to come on board. The invitation included that all the automakers work together in software developments. Weber pointed out that individual developments may not be efficient and not so successful. As Bosch, Continental, or other program components suppliers will have to make the software as per their requirements, it might be ideal to work together on the developments.
Managing director for mobility solutions at Bosch, Harald Kroger said, “We can image developing certain standards and software components together.” Which all aligns with what Diess expressed. He added that there are numerous possibilities for such partnerships which will include everything from individual component development and possibly acquisition if needed.
JPMorgan takes over Volkswagen payment platform
Volkswagen is not only looking out for software developments partnerships but recently gave over its payment platform to JPMorgan. Usually, the company doesn’t differentiate its earnings from online platforms, however, JP Morgan’s latest financing partnerships include ambitious goals.
Furthermore, with this take over, Volkswagen’s payment unit will be rebranded. Further developments like driver payments will happen through the platform, like parking, charging, fuel, and other in-car entertainment. Essentially, it helps turn the platform into a digital wallet, allowing the driver to pay right from the driver’s seat.
It is predicted that the in-vehicle payments will reach $4 billion by 2021. As Volkswagen didn’t separate its earnings earlier, it is not known about the current payment numbers. It benefits both Volkswagen and JPMorgan. Recently JPMorgan was hit with its core banking services due to low-interest rates. This is only one of the 34 acquisitions the company made in 2021.
