Volkswagen Expands AWS Factory Cloud for AI-Powered Production

Volkswagen Expands AWS Factory Cloud for AI-Powered Production

CIOTech Outlook Team | Thursday, 28 August 2025, 13:21 IST

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  • VW prolongs AWS factory cloud collaboration for five more years.
  • AI deployed to speed up manufacturing and reduce IT costs.
  • Cloud platform enables smarter logistics and vehicle assembly tools.

Volkswagen AG (VWAGY) revealed that it is extending its collaboration with Amazon Web Services (AWS). The German automaker collaborated with AWS to implement the “Digital Production Platform” (DPP), which meets its automotive manufacturing needs. The company announced that this platform is currently operational in 43 sites across Europe, North America, and South America.

Amazon's stock remained unchanged in pre-market trading on Thursday. Retail sentiment on Stocktwits regarding the company leaned towards the ‘bearish’ side.

Volkswagen's collaboration with Amazon for the "factory cloud" has been prolonged for another five years. The car manufacturer indicated in its announcement that the company employs DPP to deploy AI at its global production sites to improve the speed and efficiency of its manufacturing processes, reduce IT costs, and launch new models to the market more quickly

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 “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 states that DPP enables it to consistently implement new IT systems for production and logistics throughout all the manufacturing sites linked to this platform. An example of this is Guided Vehicle Completion, which assists the company in managing intricate operations in vehicle assembly. This system is presently utilized at 13 locations within Volkswagen, Audi, and Volkswagen Commercial Vehicles divisions.