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Volkswagen Brand China and FAW-Volkswagen establish new JV to develop and to offer digital services for future models

Volkswagen Brand China and its Chinese joint venture FAW-Volkswagen are scaling up their cooperation in the area of digitalization and connectivity. MOS Intelligent Connectivity Technology Co. Ltd., a joint venture between Volkswagen Group China and FAW-Volkswagen, will be established in the Chinese city of Chengdu.

The partners are investing a total of RMB 1 billion (US$149 million) in the company that will operate under the MOSI brand (Mobile Online Services Intelligent). The objective is to develop and offer digital services for all future Volkswagen models of FAW-Volkswagen from 2019 onwards, including vehicles based on the modular electric toolkit (MEB) from 2020.

With the new joint venture, the Volkswagen brand is forging ahead with the development of its automotive ecosystem in China.

Developing digital offers for our Chinese customers is one of Volkswagen’s key focus points. As we are starting to fully connect our models, so comes the opportunity to enrich our customers’ lives with high-quality digital services. Deepening the cooperation with our colleagues at FAW-Volkswagen, means Volkswagen can further integrate technical and customer knowledge, to create the best services for Chinese customers. We intend to offer a profound positive answer to their ever changing mobility needs.

—Dr. Stephan Wöllenstein, member of the Board of Management of Volkswagen Passenger Cars Brand and CEO of Volkswagen Brand China

The establishment of MOSI marks the official arrival of the digital era for FAW-Volkswagen Volkswagen brand. In Chinese, the two characters “Mó Sī” stand for Morse code, which endows the traditional OEM with digitization, as well as a sense of science and technology; while the two characters "Zhì Lián" stand for intelligent connectivity.

With the English name ‘MOS’ plus ‘I’, for intelligent, put together being the Chinese pinyin for Morse code, this also indicates the friendly partnership between China and the West. FAW-Volkswagen will further develop this company in a healthy, efficient and compliant way, and enhance capabilities in discovering and developing what customers want. With the strong support and effective cooperation existing between our two companies both in China and Germany, we will jointly keep pace with digitization, in order to meet requirements for our company’s strategic presence.

—Dong Xiuhui, Commercial Vice President of FAW-Volkswagen Automotive Co., Ltd., President of FAW-Volkswagen Sales Co., Ltd., and Chairman of the BoD of MOS Intelligent Connectivity Technology Co. Ltd.

(In Mandarin, the pinyin (romanization) of MOSI is Mó Sī Zhì Lián (摩斯智联).)

Chengdu is a Chinese metropolis with a strong IT foothold. Vehicle-related services will be developed in close cooperation with Volkswagen’s digital experts in China and Germany. Focus areas are the development of customer-centric connectivity services, the development of value-added services and the development of data-analytics competence, and to find areas for further service scope extension in order to enhance the in-vehicle customer experience.

MOSI’s ecosystem approach means third party service providers are an important part of the plans. Enabling and strengthening advanced connectivity technologies for holistic user experience is another area of development.

Digital online services from MOSI will be available for future FAW-Volkswagen Volkswagen brand models starting towards the end of 2019. From 2020 onwards, the joint venture will concentrate more intensively on vehicles based on the MEB.

Volkswagen sees a clear role for MOSI to develop into a competence center for new data-based business models in China. With the new joint venture, the Volkswagen brand will push ahead with the development of its automotive ecosystem linking the connected vehicle, the cloud-based platform and value-added digital services in China. The objective is to develop more and more digital services that customers will be able to access via the Volkswagen Automotive Connectivity Solutions.

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