Volkswagen Group Choses Open Collaboration to Restore Performance, 'May Pragmatism Live Only'

*This content was translated by AI.

Volkswagen Group has recently completely transformed the group's strategic paradigm by bringing 'open collaboration' and 'platform sharing' to the forefront as key keys to surviving the rapidly changing global mobility market. Volkswagen executives, led by chairman Oliver Blume, formulated a "pragmatic line" in 2026 through partnerships with outside professional companies to overcome technical limitations and maximize cost efficiency, moving away from the closed independent development method of the past. The core of these strategies is to decentralize the huge investment risks arising from the transition to electrification and software-driven automotive (SDV) and to speed development innovatively. In particular, it is taking a dual approach to reclaiming leadership in China, the world's largest electric vehicle market, through the "In China for China" strategy 2.0, and preempting the standards of next-generation architecture in the West.

This group-level strategic direction has been proven to be a concrete entity through examples of collaboration with major brands and companies conducted over the past year. Volkswagen has confirmed the specifications of next-generation electronic architecture by officially operating "RV Tech," a joint venture with Rivian, an American electric vehicle startup, to strengthen its software capabilities. This has resulted in the integration of Rivian's proven software technology into Volkswagen's unique Scalable Systems Platform (SSP) and sequentially applying it to the group's core lineup, including Audi and Scout brands, starting in 2026. In the Chinese market, the company is expanding its cooperation with XPENG to include internal combustion engines and hybrid platforms, accelerating the development of a local-only electronic architecture (CEA). Through this, it has reduced the development cycle by more than 30% and reduced production costs by 40%, which is a decisive basis for increasing Volkswagen's market responsiveness in the Chinese market, where price competitiveness is intensifying.

Collaboration in the field of autonomous driving and artificial intelligence is also a key pillar supporting the group strategy. Through partnerships with Mobileye and Valeo, Volkswagen has laid the technical foundation for expanding advanced driver assistance systems of Level 2 or higher to entry-level model MQB platform vehicles. It is also working with self-driving software company PlusAI through its commercial vehicle division, Traton Group, to accelerate the distribution of highway self-driving truck solutions in the North American market. During the launch of the new brand, Scout, it chose to collaborate with engineering company Magna Steyr to reduce initial investment costs and secure a production and design foundation to quickly settle in the off-road electric SUV market. In addition, it is expanding into an energy solution company beyond hardware by entering the large-scale battery storage device (BESS) business through the energy service brand "Elli." In the end, the company plans to quickly secure technology through partnerships and use the size of the company to complete economic performance and production networks.

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*This content was translated by AI.