VW to fuel global transformation by China-focused tech sourcing

• China-focused sourcing strategy to identify innovations to accelerate Group’s global transformation

• Group to work more closely with leading Chinese tech companies to reshape mobility industry with future-oriented digital solutions

• Key focus areas are connectivity, intelligent cockpit, autonomous driving and shared mobility

• Mr. Michael Bäcker: “By shifting our sourcing strategy towards China, we can utilize the country’s best innovations to accelerate our electrification transformation.”

Beijing, April 2, 2022. Volkswagen Group is adopting a China-focused sourcing strategy to fuel the Group’s software-centric transformation, with state-of-the-art innovations developed in partnership with leading Chinese high-tech companies. For the first time, the Group will involve Chinese suppliers in the global sourcing for the 1st SOP (Start of Production) phase for electric models to be rolled out with its CARIAD E³ 2.0 next-generation SSP (Scalable Systems Platform) in Europe and North America in 2025. The bid to provide E³ 2.0 hardware was outlined to around 20 Chinese suppliers at a recent sourcing conference held in Beijing.

Mr. Michael Bäcker, Executive Vice President of Volkswagen Group China, responsible for Purchasing, said: “China’s automobile industry has developed rapidly in the past few years, especially in electronics and cutting-edge technologies. By shifting our sourcing strategy towards China, we can utilize the country’s best innovations to accelerate our electrification transformation. Together, we will reshape the mobility industry with future-oriented digital solutions.”

CARIAD E³ 2.0 is a unified, scalable software platform for all Group cars to be developed by the Group’s automotive software company CARIAD. The CARIAD hardware sourcing bid will focus on four key areas – connectivity, intelligent cockpit, autonomous driving and shared mobility.

The suppliers are required to be equipped with innovative and flexible technical solutions for complex sourcing needs, high competence in industrialization, outstanding efficiency and the capability to organize their supply chain. Their technical concepts will be evaluated by Group engineers in Europe.

The Group also requires suppliers to share the vision towards building sustainable supply chains and support the Group’s target of achieving carbon neutrality by 2050. The Group has been working together with partners and suppliers in China and in global markets, to set up a roadmap of achieving 100% renewable electricity usage by 2030.

The suppliers qualified to meet both business and sustainability requirements will have their concepts applied in the SOP models to be rolled out from the Group’s SSP in Europe and North American market in 2025.

With the launch of the NEW AUTO strategy last July, Volkswagen Group has been rolling out a comprehensive and robust plan to enable the scaling up of future technologies, from mechatronics, software, to battery and charging, and mobility solutions.

With a shared vision for e-mobility, Volkswagen Group is now welcoming high-competence Chinese suppliers to jointly develop exciting future opportunities and help it build global leadership in the NEW AUTO world.  

See also

Volkswagen presents New Auto strategy for 2030
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