Business · Companies · 10 hrs ago

Volkswagen considers cheaper China-developed software for European models

Volkswagen considers cheaper China-developed software for European models

Volkswagen is considering using China-developed software in European models instead of software planned with US startup Rivian.

The proposal concerns high-volume future cars, including the ID.Golf, ID.Passat and Skoda Enyaq.

A person familiar with the matter said the Chinese option would cost less and could be introduced faster.

It could save Volkswagen €4 billion to €5 billion, according to people cited in the coverage of the proposal.

Volkswagen agreed to work with Rivian on software in 2024, and the first planned vehicle is a small car expected next year.

The proposal received a positive reaction when first presented to Volkswagen’s management board, but the board has not approved it.

Volkswagen brand chief Thomas Schäfer is expected to present the proposal again to the board before the end of this year.

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