Munich, September 10, 2025 — German carmaker Volkswagen has announced plans to invest up to €1 billion in artificial intelligence by 2030, marking one of the company’s most ambitious technology pushes to date. The announcement came during the IAA Mobility motor show in Munich on Tuesday.
The investment will be directed toward AI-powered vehicle development, industrial applications, and high-performance IT infrastructure, with the aim of streamlining production and cutting costs across the Volkswagen Group’s global operations.
“With AI, we are starting the next phase on the path to becoming a global leader in automotive technology,” said Hauke Stars, board member for IT at Volkswagen. “AI is our key to greater speed, quality and competitiveness – across the entire value chain, from vehicle development to production.”
A central part of the strategy involves a partnership with French software company Dassault Systèmes, which will provide an AI-driven development environment for Volkswagen engineers worldwide. The system will allow for virtual testing and simulations, potentially reducing product development cycles to 36 months or less—at least a year shorter than current timelines.
Volkswagen estimates that the program could generate cost savings of up to €4 billion by 2035, as AI tools are deployed to optimize production efficiency, improve product design, and enhance predictive maintenance across factories.
The move reflects a broader industry shift, as global automakers race to integrate AI into both vehicles and manufacturing processes. Companies such as BMW, Mercedes-Benz, and Tesla are also expanding their use of machine learning in areas ranging from autonomous driving to digital design.
For Volkswagen, which has been under pressure to accelerate its transition toward electrification and digitalization, the billion-euro AI commitment underscores a strategic bet: that the next decade of automotive leadership will be defined as much by software and computing power as by engines and design.