11/09/2025
 - 3.5 min.

Power of Scale: Strengthening innovation with AI-based software stacks

Software is a key competitive differentiator on the Volkswagen Group’s path to becoming the Global Automotive Tech Driver. At the heart of it lies the "Group Software Stack," a software toolkit which includes software-based key technologies and architectures across brands and regions.

  • Technology
Diagram of Volkswagen Group Software Stack showing components like E3 2.0, VW.OS, Cross Domain Computing, Cloud, Infotainment, and Automated Driving

A framework for all software-based technologies 

Volkswagen Group is transforming from a car manufacturer into a Global Automotive Tech Driver. Software, and with it our work at CARIAD, is a decisive factor in this shift – as a driver of innovation, a differentiator for the Group brands, a purchasing criterion for customers, and a competitive advantage for the Group.

“Volkswagen Group has the power to scale, which gives us cost advantages and speed,” said Volkswagen Group CEO Oliver Blume. “We leverage our strength as a platform champion: one common solution as a base, but with clear differentiation in brand experiences.”

Mastering key technologies ourselves

Against this backdrop, it is essential that we master key technologies ourselves and avoid dependencies. With the Group Software Stack, we develop innovative solutions in-house, with full control over the code, while accelerating with tech partners around the world – cross-brand, globally scalable, cost-efficient, and deeply anchored in the DNA of the Group.

“We aim for technical differentiation through in-house development particularly in areas that shape the driving experience and brand character. We develop software that addresses diverse local needs and can be highly personalized depending on the user and the vehicle. To achieve this, our collaboration with the Group brands and our partner network worldwide is essential”, said CARIAD CEO Peter Bosch. 

Four pillars for the digital driving experience

The Group Software Stack combines cutting-edge technologies, across four key areas, each responsible for different functions in the car.

Visual of Volkswagen Group Software Stack with Driver, Experience, Cloud, and Motion sections, set against a futuristic purple digital background

Group Driver Stacks: The future of automated driving  

The Driver Stack powers advanced driver assistance systems (ADAS) and automated driving features like lane keeping or parking assistants. CARIAD is making next-level automated driving accessible across all segments and markets with strategic partnerships like the Automated Driving Alliance with Bosch and the CARIZON joint venture in China.

Group Experience Stacks: Intelligent, personalized in-car experiences  

The Experience Stack is the basis for a scalable infotainment stack powering amongst others an AI-based assistant, a unified Application Store with over 100 apps, and a cloud-native EV routing solution. This platform enables each brand to tailor the in-vehicle experience to its customers, ensuring that every interaction feels personal and seamless.

Group Cloud Stacks: The backbone of the connected car ecosystem  

The Cloud Stack serves as the foundation for intelligent, updatable vehicles. CARIAD operates the largest digital cloud infrastructure in the global automotive market. It already connects more than 45 million vehicles globally. This enables real-time data processing for intelligent navigation, personalized entertainment, and driver assistance systems.

Group Motion Stacks: Shaping how we move  

From chassis to powertrains and energy management, the Motion Stack is a technological cornerstone for driving dynamics and behavior. In-house developed by CARIAD in close collaboration with the brands, this stack ensures that every vehicle delivers a driving experience that is safe, efficient, and feels true to the brands’ identities.

Seamless collaboration within the Group and strong partners

Our goal is to develop solutions that scale across all architectures. This includes the global architectures E3 1.1 and E3 1.2, which serve both volume and premium segments. It also covers the upcoming Software-Defined Vehicle architectures: one for Western markets, developed by Volkswagen and Rivian, and one for Eastern markets, developed by VCTC and CARIAD China with XPeng.

Volkswagen Group Software Stack diagram showing Global, SDV East, and SDV West Architectures with Driver, Experience, Cloud, and Motion Stacks on a digital purple background.

With this approach, we can streamline software development across the entire Group and are able to bring new innovations to the market faster. In the end, the customer benefits from safer, smarter, and more personalized vehicles built on a common foundation of innovation.

CARIAD Media Team

CARIAD Media Team