Volkswagen-Qualcomm Deal Strengthens SDV and Autonomous Push

Volkswagen VWAGY, a leading German automaker, has announced a strategic collaboration with Qualcomm Technologies, Inc. QCOM. Under the agreement, the Volkswagen’s software arm, CARIAD, has selected Qualcomm to supply system-on-chips (SoCs) for its software platform. The platform is designed to enable assisted and automated driving functions up to Level 4 across Volkswagen vehicles.Under the Letter of Intent (LOI), announced in early January this year, the two companies agreed to a long-term supply partnership focused on delivering advanced infotainment and connectivity capabilities powered by Snapdragon Digital Chassis solutions. The agreement is being advanced by Audi AG and Volkswagen passenger vehicles, supporting Volkswagen’s broader transformation toward software-defined vehicles (SDVs). As part of this shift, Qualcomm is positioned as a key technology partner for the rollout of Volkswagen’s zonal SDV architecture.The collaboration will be developed in the Western Hemisphere through Volkswagen’s joint venture with Rivian Automotive RIVN—RV Tech. Qualcomm will provide high-performance system-on-chips (SoCs) for infotainment capabilities, with production expected to begin in 2027. RV Tech aims to leverage the Snapdragon platform to deliver immersive digital experiences based on zonal SDV architecture, where modular central computers manage all vehicle functions.Volkswagen already collaborates with Qualcomm through its Automated Driving Alliance (“ADA”), formed by CARIAD and Bosch, to accelerate highly automated driving. The collaboration further strengthens Volkswagen’s strategy to centralize key components while expanding its expertise in integrating semiconductors and AI technologies to support scalable, future-ready mobility solutions.Within the SDV architecture, a powerful central computer controls all vehicle functions, enabling advanced infotainment and highly automated driving features. These systems can be updated over the air, ensuring vehicles are up-to-date and improving the overall customer driving experience.Volkswagen plans to roll out its SDV strategy, starting with ID.EVERY1, an all-electric model scheduled for production launch in 2027 with a starting price of approximately €20,000. The SDV architecture will further extend to future electric vehicles built on the Scalable Systems Platform, enabling Volkswagen to offer advanced products across multiple segments, price ranges and global markets. Vehicles equipped with the Snapdragon Cockpit Platform can deliver AI-driven experiences that anticipate user needs, adapt in real time to drivers and passengers, and provide assistance accordingly.As part of the ADA roadmap, CARIAD and Bosch plan to use the Snapdragon Ride Elite —Qualcomm Technologies’ most powerful automotive computing platform – to speed up the development of automated driving. The objective is to build an AI-based solution for highly automated driving that is scalable across different brands and model lines and fully compatible with the Volkswagen SDV architecture. Built on its end-to-end AI architecture, Snapdragon Ride Elite delivers ultra-low latency for sensor processing and real-time decision-making.The AUDI AG and Volkswagen Passenger vehicles, through the intended supply agreement, aim to deliver group-wide impact and include the integration of Snapdragon 5G Modem RF and V2X technology into next-generation SDV vehicles. This will enable ultra-fast connectivity and real-time communication for safer and smarter driving.Overall, the collaboration will also explore AI-driven innovations to enhance vehicle safety, personalization and intelligent mobility.Volkswagen AG Unsponsored ADR Price, Consensus and EPS Surprise Volkswagen AG Unsponsored ADR price-consensus-eps-surprise-chart | Volkswagen AG Unsponsored ADR QuoteZacks Rank & Key PickVWAGY stock currently carries a Zacks Rank #4 (Sell).A better-ranked stock in the same space is Mazda Motor (MZDAY), carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for MZDAY’s fiscal 2026 and 2027 EPS has improved 3 cents and 21 cents, respectively, in the past 60 days.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. 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(RIVN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks