Volkswagen is accelerating its plans for digital services under a new partnership with Microsoft.

The Volkswagen We eco-system will introduce a range of services, including electric car sharing

The carmaker announced this summer that it’s expanding into digital services for fleets and mobility solutions such as car sharing as it positions itself as a provider of both hardware and software.

Now, Volkswagen says it’s chosen the Microsoft Azure platform as the foundation for Automotive Cloud and connected car services for its fleet. The firm will establish a new automotive cloud development office in North America and Microsoft will help support its initial development.

“The strategic partnership with Microsoft will turbocharge our digital transformation,” said Dr Herbert Diess, CEO of Volkswagen AG. “Volkswagen, as one of the world’s largest automakers, and Microsoft, with its unique technological expertise, are outstandingly well-matched. Together, we will play a key role in shaping the future of auto-mobility.”

Announced some 2.5 years into its development, the Volkswagen We ‘eco-system’ will take effect from 2020 and will more than five million new Volkswagen brand vehicles per year be fully connected and part of the Internet of Things (IoT) in the cloud.

All in-car services for Volkswagen brand vehicles as well as the Group-wide cloud-based platform (also known as One Digital Platform, ODP) will be built on Microsoft’s Azure cloud platform and services as well as Azure IoT Edge.