Mercedes Electric Software Hub in Sindelfingen
The carmaker wants to push the start-up costs below five billion euros.
(Photo: Mercedes-Benz AG)
With huge investments, Germany’s car manufacturers wanted to dominate software development in cars. It is now clear that the manufacturers have failed with the approach of in-house development and are turning around. The challenge is too great, your own know-how too little, and the costs too high. The car manufacturers have to save, especially Volkswagen.
According to information from group circles, VW wants to save a three-digit million amount at its Cariad software unit this year alone. At Mercedes, investments in the development of its own operating system were capped at one to two billion euros.
The result: Instead of in-house developments, the car manufacturers are now relying on cooperation with tech companies such as Google. Volkswagen, BMW and Mercedes had previously shied away from it, fearing a loss of control over data and development.
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