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Volkswagen to expand its digitalisation drive with its investment in diconium

The Volkswagen Group is investing in the German digital specialist diconium and acquiring 49% of the shares in the company. With this participation, the Volkswagen Group will be securing further know-how and strengthening its digital business capabilities.

Together, the two companies will continue the development of Volkswagen’s business models and digital added-value services. diconium will therefore become a key technology partner for the development of new digital services available via the Volkswagen Automotive Cloud. The completion of the participation transaction is still subject to approval by the anti-trust authorities.

diconium (formerly dmc), with headquarters in Stuttgart, was established in 1995 and is a leading specialist in the holistic development of digital business models. Its activities include strategy development and the design of the user experience (UX), as well as the implementation and operational realisation of business ideas.

The proprietor-managed company has a total workforce of about 800 people working at locations in Germany, Portugal, the USA and India. The core competences of diconium include the development of sales platforms for digital products and services as well as IT systems in customer management.

With diconium as a technology partner, the Volkswagen Group is taking the next step in its digitalisation efforts. The objective is to offer customers digital value-added services quickly and easily for their vehicles, which will then be fully connected. The Volkswagen brand has taken the lead within the Group and is developing the Volkswagen Automotive Cloud together with Microsoft – this will link the connected vehicle, the cloud-based platform and digital services.

“At Volkswagen, we intend to expand our core business sustainably and to offer our customers more and more tailor-made digital value-added services in and around their vehicles,” says Christoph Hartung, Head of Digital & New Business / Mobility Services of the Volkswagen brand. “For this purpose, we are taking technology partners on board to assist us with development. Together, we will offer customers a wide and convenient range of services that they can use with their mobile devices or in their cars. With diconium, we have secured the support of a strong technology partner with substantial experience and considerable competence in the development of digital sales solutions.”

Among other activities, Volkswagen and diconium intend to launch a global online sales platform allowing Volkswagen customers to purchase and manage all the upcoming “We” services and on-demand functions for their connected vehicles. The functions available will include multimedia streaming, automatic payment for fuel, battery charging and parking, and over-the-air updates.

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