Volkswagen plans to invest up to €1 billion (approximately $1.2 billion) in artificial intelligence by 2030

Volkswagen Group, the German automotive giant, has announced that it plans to invest up to €1 billion ($1.2 billion) in artificial intelligence (AI) initiatives by 2030 amid ongoing transformations in its key markets in China and ￰0￱ to the German carmaker on Tuesday, it will not only invest up to a billion euros ($1.2 billion) in artificial intelligence by 2030, but will also focus on integrating the technology into every aspect of its business in a bid to unlock billions in ￰1￱ announcement came on the first day of the IAA car show in Munich, which is regarded as Europe’s biggest. Volkswagen’s CEO shares big AI plans Volkswagen’s investment will be funneled towards AI-supported vehicle development, industrial applications, and the expansion of high-performance IT infrastructure, according to ￰2￱ company expects the move will have saved them up to €4 billion ($4.7 billion) by ￰3￱ announcement comes at a critical time for the German ￰4￱ is currently in the middle of deep changes to its two main markets, China and Germany, as it steps back to work on new models and major cost ￰5￱ Sunday, it unveiled a concept for a new small electric SUV, tagged the ID.

Cross, and touted as part of the automaker’s push to offer affordable battery-powered ￰6￱ expects AI to significantly accelerate the development process for new vehicle models and technologies. “For us, AI is the key to greater speed, quality and competitiveness – along the entire value chain, from vehicle development to production,” Hauke Stars, chief IT executive, said. Volkswagen’s products will be heavily influenced by regional markets The Volkswagen Group is facing several challenges right ￰7￱ not only has to figure out its vehicle’s software, but it also has to invest in new technologies like autonomous driving while struggling to stay ahead of fierce competition in China, increased tariffs in the United States, and maintaining the competitiveness of its whole portfolio of cars.

“The automotive industry, and especially Volkswagen, have never faced so many headwinds at the same time,” Oliver Blume CEO of Volkswagen told reporters at IAA Munich. However, he also admitted that the auto show is a sign the Volkswagen Group is making progress on several fronts, including the launch of a new set of compact and affordable EVs for Europe, like the Volkswagen ￰8￱ and the upcoming ￰9￱ the past, his company got by selling the same kinds of cars everywhere—a model that’s driven everything from its ill-fated push for diesels in America to its global rollout of the ￰10￱ cars. However, he said the Volkswagen Group’s products now need to be more regional in their focus.

“Our business, over decades, worked for the Volkswagen Group to develop and produce a majority of cars in Germany, and then bringing the cars with one standard all over the world,” he said. “This model doesn’t work anymore.” From here on out, the German carmaker will tailor solutions to its problems in respective ￰11￱ the US, it can not afford to pay tariffs and pay for its high investments there, so Blume continues to hope the US government will offer ￰12￱ China , where the Volkswagen Group was an early pioneer but lost significant sales to new local players, it announced a partnership with Xpeng for electrical architectures and other automakers to make cars suited to those ￰13￱ Europe, where regulators continue to push for a plan to ban the sale of new combustion-powered cars by 2035 despite significant industry protest, it plans to continue adding more new EVs across new price ￰14￱ Bybit now and claim a $50 bonus in minutes