Volkswagen has announced plans to invest up to €1 billion ($1.2 billion) in artificial intelligence (AI) by 2030, as part of efforts to boost efficiency and cut costs across its global operations.
The announcement was made on Tuesday at the IAA Mobility Show in Munich, Europe’s largest car exhibition, where automakers are unveiling electric vehicles and new technologies to remain competitive against Chinese manufacturers.
According to the company, the investment will focus on AI-driven vehicle development, industrial applications, and the expansion of high-performance IT infrastructure. Volkswagen estimates the initiative could yield as much as €4 billion in savings by 2035.
The German automaker is currently implementing a broad restructuring plan, including cost reductions in its domestic market, while strengthening its position in Germany and China. Over the weekend, it also introduced the ID.CROSS, a concept for a compact, affordable electric SUV aimed at making battery-powered vehicles more accessible.
“AI is the key to greater speed, quality, and competitiveness along the entire value chain, from vehicle development to production,” said Hauke Stars, Volkswagen’s chief IT officer.
The investment underlines Volkswagen’s strategy to use emerging technologies to advance its electric mobility goals while maintaining an edge in a highly competitive global auto industry.
