Volkswagen Extends Amazon Factory Cloud Partnership To Control Costs

Volkswagen AG (VWAGY) on Thursday announced the extension of its partnership with Amazon.com Inc.’s (AMZN) cloud unit, Amazon Web Services (AWS).

The German carmaker partnered with AWS to deploy the “Digital Production Platform” (DPP), which supports its automotive manufacturing requirements. This platform is now live across 43 locations in Europe, North America, and South America, the company said.

Amazon’s shares were flat in Thursday’s pre-market trade. Retail sentiment on Stocktwits around the company trended in the ‘bearish’ territory.

Volkswagen’s “factory cloud” partnership with Amazon extends the term for five more years. The company uses DPP to deploy AI across its global production sites to improve the speed and efficiency of its manufacturing process, reduce IT costs, and bring newer models to the market more quickly, the carmaker said in its announcement.

“Our ambition is to become the global automotive tech driver. The Digital Production Platform plays a key role in this: it is the digital nervous system of our factories – and the key to a future of AI-powered production,” said Hauke Stars, Member of the Board of Management for IT at the Volkswagen Group.

The company says DPP allows it to uniformly roll out new IT systems for production and logistics across all the manufacturing sites connected to this platform. One such example is Guided Vehicle Completion, which helps the company coordinate complex processes in vehicle assembly. This system is currently in use across 13 sites across Volkswagen, Audi, and Volkswagen Commercial Vehicles units.

VWAGY ADR is up 28% year-to-date, while AMZN stock is up 4%.

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