Volkswagen VW is expecting to generate around 11 billion in additional revenue by 2025 through the launch of a cloud-based marketplace that will sell additional vehicle functions and online services for connected cars According to Bloomberg Jürgen Stackmann VWs head of sales said the automaker expects revenue from connected vehicles to start coming in 2020 In fact the company would like to connect its entire fleet through its partnership with Microsoft The company also recently brought in a third partner via its recent purchase of a controlling stake in fleet-connectivity provider WirelessCar for 11 billion kronor 121 million USD This is VWs latest move as it shifts focus onto its online business The company announced in October that it was going to revamp its business to focus less on dealerships and more on online sales and over-the-air software updates for its electric cars The new sales model is expected to go into effect in Europe by April 2020 and will enable seamless individual support beyond the purchase process In fact customers will be able to access a variety of services from the Volkswagen We digital ecosystem such as We Park We Deliver or We Connect People who prefer to go to a physical location though will be able to choose from city showrooms pop-up stores service factories used car centers or scalable full-feature dealerships We believe in the new business model as it will strengthen dealers entrepreneurial responsibility said Dr Matti Pörhö president of the European Dealer Council EDC which represents the interests of Volkswagen dealer councils in Europe In the areas of digitalization and eMobility the major tasks for the future dealers will play a key role To shoulder these challenges dealers need a firm foundation of profitability Pörhö praised the fair and open cooperation with Volkswagen We actively participated in shaping the business model right from the start LATEST INSIGHTS Our data and analytics team has developed a number of creative methodologies and frameworks that measure and benchmark the innovation thats reshaping the payments and commerce ecosystem Check out the latest PYMNTS report on healthcare digital identity business model Conencted Cars dealership digitalization News online marketplace partnerships sales Volkwagen VW Whats Hot