VW Brand Predicts €1 Billion Revenue from Online Services

December 20, 2018 at 1:06 PM

Volkswagen AG’s VW brand says it expects to generate €1 billion ($1.1 billion) in annual revenue by 2025 from the global wireless services network it is building.

The cloud-based marketplace, which aims to serve VW’s entire fleet of new vehicles, will offer such amenities as car sharing, delivery and parking space reservations. VW has said it expects some 5 million of its new vehicles will be part of the network by 2020.

VW partnered with Microsoft Corp. in September to develop what it calls an “industrial automotive cloud” that assembles all of the carmaker’s digital services. The marketplace will use Microsoft’s Azure platform, integrating the One Digital Platform VW was developing internally.

Yesterday VW said it also spent $122 million to acquire a 71% stake in WirelessCar, a fleet-connectivity subsidiary of commercial truckmaker AB Volvo. That service also will become a part of the network VW and Microsoft are creating.