VW Brand Expects $1.1 Billion Revenue From Virtual Shopping Mall
(Bloomberg) -- Volkswagen AG’s namesake brand is creating a cloud-based marketplace for extra vehicle functions and online services, targeting about 1 billion euros ($1.1 billion) in additional revenue by 2025.
The German manufacturer expects revenue from connected vehicles -- bundling parking, car-sharing and delivery services -- to start trickling in from about 2020, Juergen Stackmann, VW brand head of sales, said Wednesday on a call with reporters.
- VW wants to connect its entire fleet via an automotive Internet cloud together with partner Microsoft Corp. VW said earlier Wednesday it bought a controlling stake in fleet-connectivity provider WirelessCar from Volvo AB for 1.1 billion kronor ($121 million), bringing in a third partner for the system.
- Volkswagen is attempting to transform from a mass manufacturer of cars into a provider of transportation services. In August, the VW brand unveiled a car-sharing service and promised digital acquisitions as part of a 3.5 billion-euro push into next-generation automobiles.
- The world’s largest carmaker is years behind car-sharing efforts at Daimler and BMW after the lengthy distraction of the diesel-emissions cheating scandal. But through its sheer size, VW is in a position to catch up and create immediate competition.
- VW to Buy 75.1% in WirelessCar Telematics Co. From Volvo IT
- VW’s $34 Billion E-Car Budget Won’t Cover Tighter EU Rules
- VW Steps Up Digital Push Connecting Cars Through Microsoft Cloud
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