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Volkswagen Group and CGI Enhance Their Global Collaboration

In a significant expansion of their partnership, Volkswagen Group and CGI (TSX: GIB.A) (NYSE: GIB) have announced a new initiative aimed at reinforcing the automotive giant's digital capabilities. This initiative includes the creation of MARV1N, a dedicated entity that will serve as a cornerstone for Volkswagen's digital transformation projects. The joint endeavor is designed to hasten the development of cutting-edge IT systems within the Volkswagen ecosystem, facilitating a more efficient response to the ever-growing demands for software innovation.

Accelerating Development with MARV1N

MARV1N, pronounced 'Marvin', represents a strategic step toward bolstering Volkswagen's software development capacity by establishing an international development unit specifically for Group-wide digitalization projects. This initiative acknowledges the automotive sector's urgent need for robust IT infrastructures capable of supporting modern vehicle technologies and customer demands.

Hauke Stars, a board member overseeing IT at Volkswagen Group, emphasized the importance of modern IT systems in product development. "To ensure our vehicles remain competitive and innovative, we must invest in comprehensive and scalable IT solutions, and our collaboration with CGI is a vital part of this strategy. This partnership will enhance our capability to deliver software solutions swiftly and effectively."

The intent behind MARV1N is to integrate a dedicated team of software architects and developers who will focus exclusively on projects within Volkswagen. This will allow for a deeper understanding of the core processes and technologies that underpin Volkswagen's vehicle production, enabling faster adaptation to changing market conditions and technology trends.

Modernizing Legacy Systems

Volkswagen is currently undertaking a massive modernization project targeting its legacy IT systems. By 2026, the company aims to replace many outdated systems with a more streamlined and powerful infrastructure that can scale effectively. This initiative is crucial for accelerating digital processes and reducing operational costs that are significantly burdened by the current IT landscape.

This transition is not merely about cost savings; it’s also about enhancing Volkswagen’s ability to innovate. The new systems developed through MARV1N will directly contribute to faster data analysis and integration, helping to realize features such as Functions on Demand for vehicle customers and ensuring a seamless transition from development to the sales floor.

Francois Boulanger, President and CEO of CGI, expressed excitement about the broadened partnership, stating, "This strategic collaboration will leverage CGI's extensive technology expertise alongside deep understanding of the automotive industry, which allows us to support Volkswagen in achieving their ambitious digital goals."

Benefits of Close Collaboration

The collaboration is set to yield several advantages for Volkswagen. With developers and IT experts concentrating solely on Volkswagen projects, the response time for development cycles will drastically reduce. Long-term involvement in projects will ensure that teams not only execute tasks but also grow an in-depth knowledge of Volkswagen's unique processes and products.

Initially, the MARV1N teams will concentrate on projects related to Volkswagen's Technical Development division, a critical area in the broader strategy of digital enhancement. Their efforts will be vital for driving the shift to data-driven decision-making in vehicle design and integration, particularly as the automotive market increasingly gravitates towards electric and autonomous technologies.

The data management initiatives undertaken by MARV1N will consolidate the entire spectrum of vehicle electronic architecture and software functions, from pre-series development through to after-sales service. This comprehensive data approach is anticipated to enhance the speed and efficiency of software updates and new product rollouts, ultimately leading to an improved customer experience.

Volkswagen's commitment to innovation and the pursuit of a technologically advanced future is further underscored by its impressive operational statistics. In 2023, the Group delivered over 9 million vehicles globally, marking a significant increase from the previous year, and yielded substantial revenues of €322.3 billion. With the continued collaboration with CGI and the birth of MARV1N, Volkswagen is poised to redefine its approach to digital technology in the automotive realm.

As this partnership evolves, both corporations remain focused on delivering innovative solutions that not only meet current market demands but also anticipate future trends in mobility. With highly skilled teams integrated into the heart of Volkswagen's operations, the future of automotive technology looks brighter than ever.