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According to Bloomberg, Volkswagen will set up a division called Car.Software, which will employ 500 experts this year, 2000 staff by 2020, and 5000 digital experts to be responsible for software development within the Volkswagen Group by 2025.

At present, Volkswagen brand cars need to integrate as many as 70 control units, which operate software from 200 different suppliers, while Volkswagen uses systems with similar functions, such as infotainment and navigation. Volkswagen Software Division will also cover software research and development, electronics, electric accessories research and development, car networking, self-driving, consumer experience, cloud architecture and e-commerce, focusing on five core areas. Through this division, the proportion of software developed by Volkswagen will rise from less than 10% today to at least 60% by 2025.

The Automotive Software Division will develop an automotive software platform that will be used by all Volkswagen's new models in the future. The ID.3, which Volkswagen will unveil in Frankfurt this year, will be the first model to use the car software platform, which will include vw.os car operating systems and Volkswagen Cloud Services (Volkswagen Automotive Cloud). The first all-electric model built on the Volkswagen MEB platform will begin delivery next year.

Volkswagen has been actively involved in this wave of electric cars, self-driving and automotive software. Recently, Deiss, CEO of the company, revealed that Volkswagen is about to sign a strategic partnership agreement with Ford Motor Company to jointly develop electric vehicles and self-driving technology. Volkswagen is likely to invest about $1 billion in Ford's self-driving research and development subsidiary.

In terms of electric vehicles, Volkswagen recently reached a partnership with a Swedish car battery company to build two automotive battery factories in Europe through investment and joint ventures to meet their future lithium battery needs for electric vehicles. At the beginning of this year, Deiss said that software will account for 90% of future automotive innovation. Today, we have 20,000 developers, 90% of whom are hardware-oriented. But by 2030, things will change fundamentally, and software development will account for half of our development costs.

The executive also said that traditional cars have 10 times as much software code as smartphones, but in self-driving cars, there will be 1,000 times more software code than smartphones.

In the era of electrification, as consumers increasingly expect advanced driver assistance systems, smartphone connections and autopilot functions, the demand for software functions is growing exponentially.

At present, Deiss is making drastic changes to Volkswagen's carmaking empire. Driving software operations is a key part of Volkswagen's strategy by 2025 to deal with the huge shift in the auto industry to electric and self-driving cars.

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