Analysis: How Volkswagen is tackling new software challenges

The software that the group develops will extend far beyond visible systems such as infotainment and driver assistance systems. Key will be development of VW.OS, a standardised operating system for all group brands. This is essentially the software equivalent of a vehicle platform such as MEB, on which ID cars are built, and it’s described by Senger as “the new crankshaft the whole business is built on top of”.

This will be twinned with the Volkswagen Automotive Cloud, which will contain data on every future Volkswagen Group car sold and underpin online services and updates.

As with a vehicle platform, VW.OS will be highly adaptable, allowing it to function differently in different types of cars at different price points. Senger compares it to how a £50 smartphone uses the same operating system as a top-spec £2000 one but offers a very different experience.

Senger said that a key goal of VW.OS is that “customer experience will be influenced more and more by software, so it will become core for customer decisions [on cars]”. He added: “The car of the very near future needs to feel like a smartphone.”

While the group is aiming to greatly reduce its dependence on external systems, the increase in the computing required means the total amount of external software in its cars will increase, even as the percentage declines. Senger said: “Partnerships will be even more important, but the key is that we will control the partnerships in specific technologies and areas. We will define the software standards and the road map.”

At a surface level, for example, that means firms developing third-party software for infotainment systems will be required to build it to a set design and functionality template.

Senger wants to take an ‘open-source’ approach to software development, potentially licensing the system to other car makers. VW.OS will support wireless updates, allowing the group to upgrade its cars far more regularly than in a traditional car product cycle. Senger said: “With an ageing car, you can’t do anything about its styling. But with updates, the software can stay up to date.”

For a time, at least: Senger admits that, as with smartphones, ageing cars will eventually be unable to process the latest software. However, he pledged that they will be able to continue running after that point.

In the future, such systems will also offer a potential revenue stream through the sale of digital services. Senger said: “Mobility services have a chance to be a huge revenue source, but at this time they’re far from being a core business.”

The Volkswagen Group has lofty goals for Car.Software, but the ID 3’s issues show the challenges car makers face in becoming software firms. When asked about those issues, Senger responded: “We’re at the forefront and starting a forward, unique solution that software becomes its own product in the automotive industry.”