FRANKFURT:Volkswagen’s Cariad software unit and automotive supplier Bosch are set to close an automotive software cooperation agreement, Handelsblatt reported, citing company sources.
Volkswagen plans to invest a triple-digit amount of one million euros as part of the deal, the newspaper added.
Volkswagen has bundled all of its software efforts into Cariad, hoping it can challenge Tesla and Alphabet in an area in which it has not traditionally been active.
Cariad is high on Volkswagen’s transformation agenda, with CEO Herbert Diess taking responsibility for unity on the group’s board of directors this week as part of a reshuffle.
Diess sees software as the key future battleground for the automotive industry, ranging from operating systems that allow autonomous driving to software services that can be installed wirelessly.
Cariad, which receives 2.5 billion euros ($ 2.8 billion) in funds from Volkswagen each year, declined to comment. Bosch was not immediately available for comment.