Volkswagen shares are a little lower Thursday, likely driven downward as the second set off US tariffs on China goods come into force, increasing global trade war fears.
However, the German carmaker has shared two announcements of its own, including one that it will invest in its own digital ecosystem to support its Internet of Things development. VW has also agreed an electric vehicle sharing deal in Berlin, set to begin in 2019.
By 1110 BST, Volkswagen shares were 0.61% lower at €137.98. The stock has been moving broadly lower in recent weeks.
VW increases digital investment
VW announced Thursday it will invest €3.5 billion in the development of its digital ecosystem. This will include agreeing projects with other external businesses and also deals to increase its software and digital abilities.
It plans to “evolve into a central hub in the Internet of Things.”
“We have a clear vision: we will continue to build vastly superior vehicles. But going forward, our Volkswagens will increasingly become digital devices on wheels”, said VW brand Board member, Jürgen Stackmann.
“Our customers will become part of an ecosystem that we have named ‘We’. This system complements the Volkswagen experience on wheels and enables customer to take their world into their vehicle”, he added.
‘We-Share’ service to begin in Berlin
In addition to increasing its digital know-how, Volkswagen also shared the news that it has agreed an electric mobility sharing deal, called ‘We Share’ in Berlin.
Under the agreement, Volkswagen will provide 1,500 eGolf vehicles for a car-sharing service in Berlin. That is expected to be in operation in the second quarter of 2019.
“We want to motivate young, urban users to engage with e-mobility. The people of Berlin will be the first to enjoy the electrifying experience of our ’We Share’ car sharing offering,” Stackmann said.
The ‘We Share’ service is also set to launch in other German cities, London and the US, from 2020.