TSLA454.5307.79%
GM75.2900.6%
F13.1400.05%
RIVN18.0600.53%
CYD35.4900.32%
HMC29.6600.3%
TM198.2702.83%
CVNA398.8503.85%
PAG163.6200.45%
LAD325.010-0.75%
AN215.1300.79%
GPI408.350-2.02999%
ABG233.900-2.33%
SAH64.9000.67%
TSLA454.5307.79%
GM75.2900.6%
F13.1400.05%
RIVN18.0600.53%
CYD35.4900.32%
HMC29.6600.3%
TM198.2702.83%
CVNA398.8503.85%
PAG163.6200.45%
LAD325.010-0.75%
AN215.1300.79%
GPI408.350-2.02999%
ABG233.900-2.33%
SAH64.9000.67%
TSLA454.5307.79%
GM75.2900.6%
F13.1400.05%
RIVN18.0600.53%
CYD35.4900.32%
HMC29.6600.3%
TM198.2702.83%
CVNA398.8503.85%
PAG163.6200.45%
LAD325.010-0.75%
AN215.1300.79%
GPI408.350-2.02999%
ABG233.900-2.33%
SAH64.9000.67%
Dealers' #1 source for auto industry news, content, coaching & analysis

Volkswagen to invest $1.18B in AI to accelerate vehicle development, efficiency

The German automaker aims to reduce vehicle development time and enhance manufacturing efficiency and digital resilience through the use of artificial intelligence.

On the Dash:

  • Volkswagen plans to invest up to €1 billion ($1.18 billion) by 2030 to expand AI across vehicle development, manufacturing, IT, and cybersecurity. 
  • The goal is to accelerate vehicle development by at least 25%, improve efficiency, and potentially save up to €4 billion by 2035.
  • AI initiatives include partnerships, cloud expansion, industrial AI models, and efforts to secure political and regulatory support in Europe.

Volkswagen announced plans to invest up to €1 billion ($1.18 billion) by 2030 to integrate artificial intelligence across its operations, aiming to accelerate vehicle development, improve manufacturing efficiency, and strengthen digital resilience.

The German automaker announced that it will utilize AI in vehicle development, industrial applications, IT infrastructure, and cybersecurity. The company estimates that the technology could reduce vehicle development timelines by at least 25%, or roughly 12 months, while generating potential savings of up to €4 billion by 2035.

Volkswagen currently uses more than 1,200 AI applications and has several hundred more in development or nearing implementation. Partnerships, including one with Dassault Systèmes, are creating AI-powered engineering platforms for virtual testing and component simulations. In manufacturing, AI is being used to optimize vehicle assembly, energy use, and materials management. Additional AI-driven applications support cybersecurity, employee training, and knowledge sharing.

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The company also plans to expand its group-wide cloud infrastructure to handle sensitive data and improve digital resilience. Volkswagen is exploring industrial AI models, including those based on Catena-X. This Europe-wide open automotive data platform enables secure information exchange between partners, including BMW, BASF, and Mercedes-Benz.

Further, Volkswagen emphasized that political support and innovation-friendly regulations will be crucial for Europe to remain competitive in the global AI race. The company highlighted the need for targeted incentives to accelerate the commercialization of AI solutions developed in universities and research institutions.

With this investment, Volkswagen is betting on artificial intelligence as a critical driver of innovation, efficiency, and competitiveness, aiming to maintain a leading position in the rapidly evolving global automotive industry.

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Ashby Lincoln
Ashby Lincoln
Ashby Lincoln has spent over 7 years at CBT News, where he specializes in marketing and content strategy for the automotive industry. With a sharp eye for digital trends and a deep understanding of dealer communications, he helps shape compelling stories that resonate with retail professionals. Whether crafting headlines or driving long-term brand growth, his work reflects a commitment to clarity, creativity, and performance.

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