Published by Global Banking & Finance Review®
Posted on August 28, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleVolkswagen extends its cloud partnership with Amazon to enhance production efficiency and cut costs using AI, impacting 43 global sites.
BERLIN (Reuters) -Volkswagen has extended its 'factory cloud' partnership with Amazon Web Services by another five years, the German carmaker said on Thursday, as it rolls out the use of artificial intelligence to improve production and reduce costs.
The company partnered with the cloud computing services unit of Amazon.com to create a digital production platform, or DPP, which Volkswagen says is already used in 43 locations in Europe, North America and South America.
Globally, Volkswagen has over 114 production sites.
"Our ambition is to become a global technology driver for the automotive industry. To this end, we are consistently digitising and networking our company in all areas," Hauke Stars, Volkwagen's chief executive for IT, said in a statement.
Volkswagen factories connected to the cloud platform can operate more efficiently, for example by optimising the interaction of complex processes in vehicle assembly, the statement said.
The company, which is undergoing a major overhaul to cut costs, estimates group-wide savings in the tens of millions of euros as a result of these systems in the medium term.
(Reporting by Rachel MoreEditing by Madeline Chambers)
Artificial intelligence (AI) refers to the simulation of human intelligence in machines programmed to think and learn like humans, enabling them to perform tasks such as problem-solving and decision-making.
Cloud computing is the delivery of computing services over the internet, allowing users to access and store data and applications on remote servers rather than on local computers.
A digital production platform is a technology framework that integrates various digital tools and processes to enhance manufacturing efficiency, often utilizing data analytics and automation.
A partnership in business is a formal arrangement where two or more parties collaborate to manage and operate a business, sharing profits, losses, and responsibilities.
Cost-saving measures are strategies implemented by businesses to reduce expenses and improve profitability, often involving efficiency improvements and resource optimization.
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