Volkswagen team up with Siemens, AWS to improve plants

Volkswagen team up with Siemens, AWS to improve plants


Volkswagen has doubled down its efforts to transform its manufacturing and logistics processes to raise efficiency in production using cloud-based platform as it struck two different deals last week stepping towards the goal.

The automaker teamed up with Amazon Web Service (AWS) for cloud services and selected Siemens to provide integration facilities to connect manufacturing plants with the AWS’s cloud.

Volkswagen made an agreement, announced on Wednesday, with AWS to work on that desired cloud-based platform. The multi-year agreement will allow Volkswagen to use several of the AWS’s services globally, which will also include the internet of things, analytics and machine learning.

Using AWS’s technologies will make Volkswagen able to improve and standardize its production flexibility and will help increase vehicle quality as well as efficiency of plant processes.

The implementation of cloud-based platform will initially be used for managing the overall effectiveness of assembly equipment and to collect data from 122 manufacturing plants in real time to keep the parts and vehicles under track; and will eventually integrate over 1,500 suppliers and 30,000 facilities of supply chain of Volkswagen, AWS said.

The global expertise of Volkswagen Group in automobile production and technological know-how of AWS matches with each other very well, Oliver Blume, who is a member of the board of management of Volkswagen Aktiengesellschaft and chairman of the executive board of Porsche AG, said in a statement Wednesday.

In a separate deal announced on Friday, Volkswagen joined hands with Siemens, which will provide integration service to help Volkswagen to connect 122 plants to Amazon’s cloud service.

Both companies did not disclose the financial details of the agreement, but said that Siemens, in different manufacturing facilities at 122 plants of Volkswagen, will be playing major role in integration process by ensuring the efficient networking of equipment and machinery with the AWS’s cloud.

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She is the Managing Editor for in-depth discussions and analysis as well as breaking news at Markets Morning. She works closely with Editor-in-Chief Zac Berry on content and publishing initiatives for the site. Brianna Clemons has worked as a financial journalist and editor since 1997. She lives in Bucks County, PA, with her husband, four young children and one dog.