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VW Buys Volvo Truck’s WirelessCar Unit
Volkswagen AG has agreed to buy 75% of truckmaker AB Volvo's connected vehicle services unit for 1.1 billion kronor ($122 million).
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Volkswagen AG has agreed to buy 75% of truckmaker AB Volvo's connected vehicle services unit for 1.1 billion kronor ($122 million).
The deal is expected to close during the first half of 2019. VW will have an option to buy the remainder of WirelessCar at a later date.
The sale will allow Volvo to focus on its core commercial vehicle business. The truckmaker says shedding the unit will contribute 1.5 billion kronor ($170 million) to its operating income.
WirelessCar’s platform offers concierge, automated payment for tolls, remote diagnostics and roadside assistance services to customers such as Daimler, Jaguar Land Rover, Nissan and Volvo Cars. The supplier, which says 3.5 million connected vehicles use its technology, forecasts sales of about 500 million kronor ($55 million) this year.
WirelessCar was founded in 1999 and became a wholly owned subsidiary of Volvo Truck in 2007. The company employs nearly 400 software engineers.
VW plans to combine WirelessCar with its own connected vehicle efforts, which include the One Digital cloud-based platform the carmaker is developing with Microsoft and Diconium. The platform will cover a variety of mobility services, including car- and ride-sharing, mapping, entertainment and other third-party content.
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