Volkswagen Shortens Development to 36 Months
Volkswagen plans to bring new products and technologies to production readiness within 36 months or less. Its internal PEP 36 development program is intended to shorten the current process by around one year.
Artificial intelligence is a key part of this effort. It will not only assist with programming but also accelerate engineering, procurement, quality assurance and production. At the same time, Volkswagen is aligning its vehicle projects more closely with the software development cycle.
In future, software will play a greater role in determining when a vehicle is ready for production, rather than having to conform to constantly changing model plans.
This is an important step toward the software-defined vehicle, or SDV. Instead of developing numerous custom solutions for each model, a stable software stack can be used in multiple vehicles and later expanded with additional features via updates.
Development Costs Could Fall by up to 40%
Volkswagen believes it can reduce development costs by 30% to 40%. To achieve this, it plans to eliminate duplicated work and make more consistent use of shared resources across the Group.
This includes validation and testing within the Core brand group, comprising Volkswagen Passenger Cars, Skoda, Seat, Cupra and Volkswagen Commercial Vehicles. Advanced development, toolmaking and supplier processes are also expected to reach a near-production stage earlier.
Shared technology does not automatically mean identical vehicles. Platforms, electronics and software can be shared across the Group, while chassis tuning, design, controls and equipment continue to shape each brand’s identity.
This principle can already be seen in the Electric Urban Car Family comprising the VW ID. Polo, Cupra Raval and Skoda Epiq. Strong demand for the VW Group’s new entry-level EVs underlines the importance of scalable technology for affordable models.
SSP Combines 800 Volts with a New Software Architecture
The Scalable Systems Platform, or SSP, remains Volkswagen’s central future platform for electric cars in Europe and North America. In the long term, it is intended to replace the current Modular Electric Drive Matrix, or MEB, which underpins models including the VW ID.3.
| SSP Technology | Intended Benefit |
|---|---|
| 800-volt system | Higher charging power, lower currents and potentially more efficient power electronics |
| Zonal electronics architecture | Fewer individual control units, simpler wiring and software that is easier to update |
| Steer-by-wire | Steering commands are transmitted electronically and can be adapted more flexibly to the vehicle and driving situation |
| Range-extender option | Additional range from an internal combustion engine that generates electricity |
| Shared software stack | Features can be developed across models and added via updates |
The 800-volt technology in particular is likely to deliver tangible benefits in everyday use. With a suitable battery and charging station, higher charging power is possible, while the electrical system can operate at a lower current for the same power output. The advantages over established systems are explored in our comparison of 800-volt and 400-volt EV architectures.
Rivian Provides Key Building Blocks for the Software-Defined Vehicle
The joint venture between Volkswagen and Rivian plays a central role. The electrical and electronic architecture developed there is intended to provide key foundations for the SSP.
Instead of numerous distributed control units, the concept uses powerful central computers and clearly defined vehicle zones. This reduces complexity and makes updates easier because new features no longer need to be adapted to numerous individual control units.
For drivers, this could eventually mean more stable software, faster updates and vehicles that remain current for longer. However, the crucial factor will be whether Volkswagen can reliably bring the shared architecture into large-scale production rather than equipping only a handful of demonstration vehicles with it.
Range Extender Is an Option, Not a Model Announcement
One surprising aspect is that the SSP is being engineered to support a range extender. In this setup, the internal combustion engine does not drive the wheels directly but instead acts as a generator for the electric powertrain.
This can be useful in regions with sparse charging networks or where very long journeys are common. In Germany, Austria and Switzerland, however, the benefit is less clear because of the growing fast-charging infrastructure.
Volkswagen itself currently expects little demand for range extenders outside China. Technical support for them should therefore not be interpreted as an announcement of a specific model. Instead, it gives the Group flexibility if market conditions or customer preferences change.
Arguments in Favor
- Long overall range without an especially large battery
- Less dependence on charging infrastructure
- Flexible adaptation of the SSP to different global markets
Arguments Against
- Additional cost, maintenance and mechanical complexity
- Local emissions while the generator is running
- Less benefit in regions with dense fast-charging networks
ID. Every1 to Use New Architecture from 2027
The production version of the VW ID. Every1 is scheduled to arrive in 2027 as the first model to reach the road with the new SDV architecture. To make the subcompact car economically viable, Volkswagen will initially rely on economies of scale from the existing MEB family and strict cost management.
Further savings are expected from less expensive batteries, integrated electronic components and standardized battery management systems. Modular AC chargers and a greater number of identical small parts can also reduce costs without requiring customers to sacrifice brand identity in visible areas.
AI Is Also Intended to Improve Driver-Assistance Systems
Volkswagen also sees artificial intelligence as an important building block for driver assistance and automated driving. AI-based end-to-end systems can translate sensor data into driving decisions more directly than purely rule-based approaches.
The Group expects vehicles with a high degree of automation in Europe and North America toward the end of the decade. Initially, development is likely to focus on more capable Level 2 systems, in which the driver remains responsible.
SSP Must Combine Speed and Quality
With PEP 36, Volkswagen is tackling a problem that is putting European manufacturers under increasing pressure in their competition with China: long development cycles combined with growing software complexity. The new strategy is intended to use shared Group technology without turning VW, Skoda, Cupra or Porsche into interchangeable products.
To achieve this, the SSP combines rapid software development, 800-volt technology and a more flexible powertrain strategy. For now, the range extender remains a technical fallback. More important for the DACH market—Germany, Austria and Switzerland—are short charging times, reliable updates and more affordable electric cars that Volkswagen aims to bring to production readiness more quickly.
