• The partnership comes in the backdrop of Volkswagen’s efforts to provide connected vehicle services across the world
• The automaker can now offer its customers various services such as customized on-board media streaming, suggestions for charging and parking

German automaker Volkswagen has reportedly announced that it has signed an agreement with tech giant Microsoft to co-operate on cloud computing in the United States and China. As per trusted sources, the partnership agreement is being viewed as a part of Volkswagen’s efforts to provide connected vehicle services across the world.

Reportedly, the announcement of the collaboration deal was made in Berlin on Wednesday by Microsoft CEO Satya Nadella and Volkswagen AG CEO Herbert Diess. Sources familiar with the development claim that Volkswagen would utilize its Automotive Cloud – based on Microsoft technology – as the primary component of its vehicle and service data operations for its new ID electric vehicles slated to be launched across U.S. and China in 2020.

According to a report published by The Economic Times CIO, Volkswagen can now offer its customers services such as customized on-board media streaming as it would enable its vehicles to leverage Microsoft's remote computer processors via the so-called cloud. The automaker would also be able to make suggestions for charging and parking of the vehicles. 

Microsoft and Volkswagen, as per reliable reports, have started working on their first model projects for connected vehicle services. Owing to these projects, the development of Volkswagen’s North America development center is moving ahead swiftly. The automaker is also reportedly cooperating with the German specialist Diconium as part of its digitization plans.

The collaboration between both the firms on extensive cloud computing services in the U.S. and China would ensure that Microsoft’s remote computer allows customers with advanced personalized services.

For the record, apart from Microsoft, Apple has long been planning to foray in the automotive sector. The iPhone maker recently reduced its ‘Project Titan’ back, cite reliable sources.