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Volkswagen Purchases Volvo’s Connected Car Unit

Volkswagen Purchases Volvo’s Connected Car UnitVolkswagen (VW) recently disclosed that it is purchasing a controlling stake in Volvo’s WirelessCar, a digital service developer that specializes in connected driving. The deal is finalized for about $122 Million. VW proclaimed that the WirelessCar technology might further its objective of advancing value-added services for its customers. The firm plans to offer its customers secure and constant data exchange between operating systems in its cars and a cloud platform it is working on with Microsoft.

The German carmaker is supposed to purchase about 75.1% of WirelessCar in the latest contract. This will let Volvo aim at commercial vehicles, its central business since it traded Volvo Cars in 1999. VW proclaimed that, by 2023, it targets to invest over 11 Billion Euros in digitalization, electric vehicles, self-governing driving and mobility services. However, a bulk amount would be allocated for electric cars. WirelessCar has its own technology platform. It develops digital services such as billing and safety & emergency breakdown services for customers such as Daimler, Jaguar Land Rover, Nissan, and Volvo Cars.

On a similar note, VW came into the news as it might need to step up its strategies for the huge production of electric vehicles. The firm will have to take this decision so as to comply tougher-than-estimated European targets to minimize the greenhouse emissions from cars. The comments appeared when the European Union disclosed its target to cut CO2 emissions from cars by about 37.5% up to the end of 2030.

This also follows warnings from Germany, home to the bloc’s largest automotive sector, that hard targets might cost employments and damage the sector. It is surplus the 30% VW predicted and might transform into a share for electric vehicles of over 40% of its estimated total vehicle sales in 2030, Herbert Diess, CEO, VW, stated. Peter Altmaier, Economy Minister, Germany, proclaimed that the targets were at the boundary of what was economically and technically practicable.

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