Volkswagen and its Chinese joint venture partner FAW-Volkswagen will together develop new digital services for VW brand models that are increasingly expected to have full connectivity on board.

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VW and its Chinese partner FAW want to offer more services as cars get connected (Image: Shutterstock)

“Developing digital offers for our Chinese customers is one of Volkswagen’s key focus points,” the VW brand’s China boss, Stephan Woellenstein, said in a press release. “As we are starting to fully connect our models, so comes the opportunity to enrich our customers’ lives with high-quality digital services.”

VW and its partner will jointly invest RMB 1 billion (131 million euros) in a joint venture that will be based in Chengdu and will be called MOS Intelligent Connectivity Technology Co. Ltd (MOSI).

MOSI will develop digital services for all Volkswagen models of FAW-Volkswagen from the end of 2019 onwards.

Dong Xiuhui, commercial vice president of FAW-Volkswagen, said the establishment of the joint venture “marks the official arrival of the digital era for FAW-Volkswagen.”

VW said the new company will focus on developing customer-centric connected services and boost its data-analytics competence.