Volkswagen Group has chosen SAP to reorganize its customer relationship managenemt software, industry insiders say.

SAP, the world's largest maker of business software, will provide CRM software for all passenger car brands belonging to the VW Group. Rollout will start in Germany in coming months and other countries, including Spain and Italy, will get the new software later this year.

Sources say VW needed new CRM software because currently installed SAP programs don't include important features such as social media. VW needs these tools to improve customer retention.

The new CRM software is part of a bigger package of services that SAP is providing to the VW Group. Total investment volume for the entire project is around 800 million euros.