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Volkswagen buys Volvo’s connected car unit for $122 million

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    Volkswagen, which is a German Automaker was originally established in the year 1932. The company is now going buy a major controlling stake in Volvo’s, WirelessCar.

    Volvo is a basically a Swedish multinational company with its headquarters situated in Gothenburg.Volvo’s major activity involves the production and sale of buses, trucks and construction equipment.

    The companies announced the news on Wednesday stating that the stake is worth 1.1 billion Swedish crowns or approximately $122 million.

    Source: Yahoo Finance

    Volkswagen stated that the WirelessCar technology would help them to take another step towards their goal of nurturing a value-added services for their consumers by enabling a stable and risk free data exchange between the operating system in its cars and the cloud platform which it is developing with Microsoft.

    A WirelessCar is basically a car which well equipped with internet access, allowing it to share data with the devices irrespective of their position.

    The German Automakers will buy in the deal around 75.1 percent of  WirelessCar, allowing Volvo to focus all its attention on commercial vehicle, which has served as its major business ever since it sold its first car in the year 1999.

    Source: Future Car

    Volkswagen has announced that its aim is to invest more than 11 billion euros by 2023 in the fields of digitalization, mobility services, electric vehicles and autonomous driving, with a special emphasis of bulk earn-mark for electric car.

    The company at present holds more than 3 million active connected cars all over the world as stated by Volvo in its statement. The company even said that some 500 million crowns of revenue is expected in the present year.

    Volkswagen’s digital shop will furnish its users with offer services such as its parking app named We park, its car sharing services named We Share and its car trunk delivery services called We deliver.

    Source: Finance Yahoo, Live Mint

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