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Volkswagen establishes new joint venture for connected services

Volkswagen Brand China and its Chinese joint venture FAW-Volkswagen are scaling up their cooperation in the area of digitalisation and connectivity.

MOS Intelligent Connectivity Technology Co. Ltd., a joint venture between Volkswagen Group China and FAW-Volkswagen, will be established in the Chinese city of Chengdu.

The partners are investing a total of RMB 1 billion in the company that will operate under the MOSI brand (Mobile Online Services Intelligent).

The objective is to develop and offer digital services for all future Volkswagen models of FAW-Volkswagen from 2019 onwards, including vehicles based on the modular electric toolkit (MEB) from 2020.

With the new joint venture, the Volkswagen brand is forging ahead with the development of its automotive ecosystem in China.

MOSI is to be located in the city of Chengdu, a Chinese metropolis with a strong IT foothold. Vehicle-related services will be developed in close cooperation with Volkswagen’s digital experts in China and Germany.

Focus areas are the development of customer-centric connectivity services, the development of value-added services and the development of data-analytics competence, and to find areas for further service scope extension in order to enhance the in-vehicle customer experience.

MOSI’s ecosystem approach means third party service providers are an important part of the plans. Enabling and strengthening advanced connectivity technologies for holistic user experience is another area of development.

Digital online services from MOSI will be available for future FAW-Volkswagen Volkswagen brand models starting towards the end of 2019. From 2020 onwards, the joint venture will concentrate more intensively on vehicles based on the MEB.

Volkswagen sees a clear role for MOSI to develop into a competence center for new data-based business models in China.

With the new joint venture, the Volkswagen brand will be forging ahead with the development of its automotive ecosystem linking the connected vehicle, the cloud-based platform and value-added digital services in China, too.

The objective is to develop more and more digital services that customers will be able to access via the Volkswagen Automotive Connectivity Solutions.