Volkswagen Group's car software company Cariad Estonia AS, formerly Car.Software Estonia, invested €1.57 billion in development last year and plans to expand its team in Estonia to 50 people by the end of 2021.
Volkswagen Group's car software company Cariad Estonia AS, formerly Car.Software Estonia, invested €1.57 billion in the development of intra-group software solutions last year and posted a loss of €354 million for 2020.
Head of the company Nicolas Derbin said the results are as planned and the focus of the fast-growing company will continue to be on investments and expansion of the team. The company plans to make a profit in the coming years, it appears from Cariad's report for the last financial year.
"Cariad Estonia's financial results for the first year are in line with Cariad's plans to focus primarily on expansion and software development in the coming years. The revenue base will only start to grow once the first development projects have been completed," Derbin said in a press release.
Cariad SE is Volkswagen Group's newest international company, consolidating and expanding the group's software competencies to develop technological solutions for all Volkswagen brands. Cariad Estonia, a subsidiary of Cariad established in March last year, is contributing to this goal primarily with intellectual property management and a local software development team.
As of the end of 2020, the company had eight employees, but the plan is to grow to a team of up to 50 members. Most of the staff will be software developers, and there are also plans to expand the team of legal experts.
The Volkswagen Group plans to invest €27 billion in digitization by 2025, a significant part of which will be managed by Cariad. By the end of this year, Cariad as a whole plans to grow from 4,500 employees to 5,000 employees.
Editor: Helen Wright