Volkswagen has extended its cloud partnership with Amazon Web Services for another five years, deepening its commitment to using AI for production optimization across its global manufacturing network. The German automaker estimates the AI-driven systems will generate tens of millions of euros in cost savings over the medium term, supporting its broader cost-cutting overhaul.
What you should know: Volkswagen’s digital production platform is already operational across 43 manufacturing locations in Europe, North America, and South America.
Why this matters: The partnership represents a strategic shift toward AI-powered manufacturing as traditional automakers face mounting pressure to reduce costs while competing with tech-savvy electric vehicle manufacturers.
The big picture: Traditional automotive manufacturers are increasingly turning to cloud computing and AI to modernize legacy production systems and compete more effectively.
What they’re saying: “Our ambition is to become a global technology driver for the automotive industry. To this end, we are consistently digitising and networking our company in all areas,” said Hauke Stars, Volkswagen’s chief executive for IT.