Evolving Quality and Software Requirements for Volkswagen Group Suppliers: From IATF 16949 to 2025 Standards

1. Summary

• In the wake of intensified global competition and rapidly advancing technological landscape, the Volkswagen Group has undertaken significant enhancements to its supplier directives focused on quality and software development. Following the interpretation of the IATF 16949:2016 standard initiated in early 2024, VW formalized a comprehensive Quality Framework Agreement for its suppliers in April 2025. This initiative is set against the backdrop of escalating customer expectations and the urgent need for suppliers to exhibit robust quality management systems that exceed mere compliance with established automotive standards. The newly released Group Basic Software Requirements (LAH.893.909), published shortly after the Quality Framework in mid-April 2025, aim to standardize software development processes across the Volkswagen supply chain, highlighting the increasing significance of software in vehicle performance and safety.

• The analysis of the foundational document, IATF 16949:2016, reveals its pivotal role in shaping the operational parameters of suppliers. It establishes essential criteria for quality management systems while relying on the vital Customer Specific Requirements (CSR) to elucidate the specific interpretations and expectations of VW. The CSR not only complements IATF but also lays down detailed guidelines tailored to VW’s unique quality demands, which suppliers must integrate into their protocols to foster a culture of continuous improvement and accountability.

• Subsequently, the newly implemented Quality Framework Agreement for Suppliers articulates VW's expectations around accountability in quality assurance and incorporates principles from the 'formel-Q-konkret' framework. This agreement facilitates a structured approach to procurement and evaluation, emphasizing stringent quality checks and documentation to further eradicate risks associated with substandard components entering the supply chain. As a testament to VW's approach, the framework solidifies the relationship between CSR and IATF, amplifying the necessity for a dual compliance strategy that addresses both standardized quality expectations and customer-specific demands.

• Alongside these measures, the Group Basic Software Requirements establish a standardized methodology for developing vehicle-related and vehicle-based software, critical to ensuring safety and operational reliability. With its latest version reflecting industry best practices and technological advancements, LAH.893.909 emphasizes the importance of cybersecurity and meticulous testing in the development process. As suppliers align their internal practices with these specifications, it is anticipated that a collaborative environment will emerge, enhancing integration and quality across VW's expansive supply network.

2. Foundations in IATF 16949:2016 and Customer Specific Requirements

• 2-1. Role of IATF 16949:2016 in VW cooperation

• IATF 16949:2016 serves as the cornerstone of quality management systems in the automotive industry, establishing a framework that aligns with customer expectations, including those from Volkswagen (VW). The standard stipulates essential criteria that suppliers must meet; however, it lacks specificity regarding the methodologies employed to achieve such compliance. As outlined in the foundational document 'Formel Q – Key Quality Requirement for Cooperation with VW, ' CSR (Customer Specific Requirements) complements IATF by providing detailed guidance on the interpretation of these criteria within VW's context. This partnership relies on a shared understanding of quality expectations, where IATF 16949 serves merely to address the question of 'what' must be accomplished while CSR informs 'how' these objectives should be effectively realized in practice.

• The integration of IATF 16949 into VW's cooperative framework underscores the necessity for suppliers to implement robust quality management processes that not only meet IATF’s standards but also adhere to the specific requirements laid out by VW. The efficacy of this collaboration hinges on consistent communication and a clear understanding of VW’s unique expectations, which are articulated through the CSR. As such, suppliers are not only required to demonstrate technical compliance but also to foster an organizational culture that prioritizes quality and continuous improvement in line with both the standard and VW's customer directives.

• 2-2. Definition and scope of customer specific requirements

• Customer Specific Requirements (CSR) represent a critical extension of IATF 16949:2016’s directives, tailored to the unique demands of VW. These requirements serve to clarify essential elements that must be integrated into suppliers' quality management systems, thereby ensuring that products and services meet VW's stringent expectations. CSR encompasses a variety of operational aspects, including audit frequencies, qualification processes, and accountability mechanisms related to product integrity. According to IATF clause 4.3.2, these specific requirements must be documented within the quality management system, necessitating ongoing monitoring and updates to reflect any changes in VW’s directives.

• To facilitate compliance, suppliers are advised to maintain a comprehensive documentation strategy that notably includes a matrix or table indicating where CSR are addressed within their quality management systems. This rigorous approach is designed to preempt compliance challenges amid the dynamic nature of automotive supply chains. Notably, CSR covers a spectrum from foundational quality assurance practices to the integration of legal requirements, thereby encapsulating the complexities of operating within VW’s supply ecosystem. As emphasized by the Formel Q framework, adherence to CSR is not optional; rather, it serves as a non-negotiable criterion for sustaining supplier relationships with the VW Group.

• 2-3. Integration of additional criteria beyond the base standard

• The integration of additional criteria into the base standard IATF 16949:2016 through CSR highlights the necessity for suppliers to adapt and evolve their quality management practices in response to specific customer demands. The fundamentality of CSR is rooted in VW's commitment to quality excellence, which mandates that suppliers go beyond merely fulfilling the basic requirements outlined in IATF. This necessity scales from the preparation of Requests for Quotation through the nuanced evaluation of product quality during serial production, ensuring that every phase of the product lifecycle adheres to stringent quality guarantees.

• One key aspect of this supplemental guidance is the differentiation between various categories of requirements, such as those pertaining to software capability and process auditing. For example, criteria addressing the evaluation of new suppliers through methods aligned with VDA 6.3 underscore the importance of rigorous auditing and the preemptive identification of quality risks. Additionally, specifics related to quality oversight during serial production reinforce the principle that suppliers must remain vigilant in monitoring and documenting internal processes. CSR thus provides a structured approach for suppliers to not only comply with the basic standards but also to ensure a systemic commitment to continuous improvement, risk management, and enhanced customer satisfaction within Volkswagen’s comprehensive quality framework.

3. Volkswagen AG Quality Framework Agreement for Suppliers

• 3-1. Objectives of the 2025 Quality Framework Agreement

• The newly established Quality Framework Agreement for Suppliers at Volkswagen AG, formalized in April 2025, aims to enhance the quality assurance processes across the supply chain. Its primary objectives center on ensuring that all module and system suppliers are accountable for the quality of the components they contribute. This accountability includes taking responsibility not only for the products they manufacture but also for quality in assembly, thereby reinforcing a culture of continuous improvement among suppliers. The agreement explicitly incorporates principles outlined in the 'formel-Q-konkret' quality management framework, establishing a robust reference for quality expectations and performance evaluations.

• 3-2. Procurement and supplier evaluation processes

• Under the terms of the 2025 Quality Framework Agreement, Volkswagen AG delineates a comprehensive approach to procurement and supplier evaluation that emphasizes stringent quality assessments. Suppliers are required to conduct incoming goods identity checks, which involve verifying part numbers against approved design documentation to ensure compliance with VW's specifications. Additionally, designated parts with fixed procurement specifications will be subjected to routine quality checks to mitigate any risks of substandard components entering the supply chain. The agreement mandates that suppliers document these evaluations comprehensively, fostering a transparent process that allows VW to monitor compliance effectively.

• 3-3. Relationship with customer specific requirements under IATF

• The relationship between the newly implemented Quality Framework Agreement and existing customer specific requirements under the IATF 16949 standard is integral to VW's quality management strategy. The agreement enhances alignment with IATF specifications by integrating additional criteria that address unique product and operational expectations identified by Volkswagen's customers. This dual compliance approach ensures that suppliers meet both standardized automotive quality expectations and any specific conditions that arise from customer feedback or evolving market demands. Such alignment not only reinforces product integrity but also bolsters supplier partnerships, as adherence to these aligned standards directly impacts suppliers' competitiveness and market relevance.

4. 2025 Group Basic Software Requirements (LAH.893.909)

• 4-1. Overview of the LAH.893.909 specification

• The Group Basic Software Requirements (LAH.893.909) serve as a critical framework for the Volkswagen Group, delineating essential specifications for vehicle-based and vehicle-related software. This specification is vital as it seeks to standardize the development processes across various suppliers to ensure coherence and quality in software delivery. With its latest revision published on April 15, 2025, this document underlines the commitment of Volkswagen to maintain strict performance standards and quality assurance measures in the automotive software landscape. This updated version of the specification reflects the sophistication and the evolving landscape of automotive technology, incorporating advancements in software engineering methodologies and responding to emerging automotive trends.

• Key elements of LAH.893.909 include not only the foundational software requirements but also a comprehensive outline of development processes that suppliers must follow. It is integral for suppliers to understand the weight of software requirements within their delivery processes—failing to adhere could lead to significant repercussions in supplier evaluation and contractual obligations.

• 4-2. Key demands for vehicle-based and vehicle-related software

• The LAH.893.909 outlines specific demands related to the development of vehicle-based software, emphasizing several crucial components such as compliance with cybersecurity protocols, effective project management, and comprehensive documentation of deliverables. It mandates that all vehicle-related software must undergo rigorous testing and validation processes to ensure functionality, safety, and reliability before integration into vehicles. Testing phases are delineated, requiring systematic verification and validation to fulfil not just VW’s internal standards but also broader industry regulations. This level of meticulousness in software development is designed to enhance not only the operational performance of the vehicles but also the safety and satisfaction of customers.

• Moreover, the specification places a strong emphasis on the integration of cybersecurity measures within all stages of software development. Given the increasing reliance on connected technologies in vehicles, requirements related to cybersecurity incident management, risk analysis, and overall security architecture have become paramount. The LAH.893.909 establishes a high bar for suppliers on these fronts, ensuring that software not only operates efficiently but is also secure against potential cyber threats.

• 4-3. Expected impact on supplier development processes

• The introduction of LAH.893.909 is anticipated to significantly reshape supplier development processes. Suppliers are now required to align their internal processes with the rigorous specifications outlined in this document. This connection highlights the cascading impact of these requirements on supplier quality management systems, necessitating not merely procedural changes but a complete re-evaluation of how software development is conducted. The expectation is that suppliers will adopt agile practices that allow for rapid adaptation to evolving requirements, thus improving responsiveness to VW’s dynamic demands.

• As suppliers adapt to LAH.893.909, the expectation is that this will foster a more collaborative environment, wherein VW and its suppliers can work together more effectively—sharing information, troubleshooting issues, and innovating solutions to meet the increasingly complex software demands of modern vehicles. This cooperative approach is designed to streamline integration and elevate overall quality within the supply chain, positioning Volkswagen Group as a leader in automotive software excellence.

Conclusion

• The recent developments within the Volkswagen Group—marked by the rigorous interpretation of IATF 16949:2016, the establishment of the Quality Framework Agreement, and the release of the LAH.893.909 software requirements—indicate a profound shift towards a more integrated and accountable supplier ecosystem. This evolution underscores VW's strategic commitment to maintaining high standards of quality, safety, and innovation throughout its global supply chain. As the landscape of automotive manufacturing transforms, suppliers are now faced with the critical task of not only complying with these stringent guidelines but also re-evaluating their quality management and software development lifecycles to align with VW’s expectations.

• Looking forward, the trajectory of supplier relationships with the Volkswagen Group will increasingly hinge on their ability to innovate and adapt. The integration of digital tracking systems for compliance, alongside iterative refinements in alignment with emerging software architectures, is expected to bolster VW’s quality assurance capabilities. As these advancements unfold, the focus on cultivating synergies within the supply chain will be pivotal in overcoming challenges and ensuring that suppliers can meet VW’s demanding criteria. The path leads toward a future enriched with enhanced cooperation, continuous improvement, and a shared commitment to excellence in automotive technologies—a future in which VW aims to cement its status as a leader in not only automotive manufacturing but also in cutting-edge software integration.

Glossary

• IATF 16949: IATF 16949:2016 is an international standard specifically designed for quality management systems in the automotive sector. It sets out criteria for a quality management system, focusing on continuous improvement, defect prevention, and the reduction of variation and waste in the supply chain. As of May 2025, this standard is crucial for automotive suppliers aiming to meet the quality expectations of major manufacturers such as Volkswagen Group.

• Customer Specific Requirements (CSR): Customer Specific Requirements (CSR) are tailored standards that supplement the IATF 16949 framework, providing detailed guidelines that reflect Volkswagen's unique quality expectations. Effective from early 2024 and important as of May 2025, CSR mandates integration into suppliers' quality management systems and emphasizes documentation, monitoring, and compliance to foster continuous improvement in supplier performance.

• Quality Framework Agreement: The Quality Framework Agreement for Suppliers, formalized in April 2025, outlines Volkswagen's expectations regarding quality assurance and accountability within its supply chain. It integrates principles from the 'formel-Q-konkret' framework and mandates that suppliers maintain stringent quality checks, thereby emphasizing a culture of continuous improvement and clear documentation in supplier evaluations.

• LAH.893.909: LAH.893.909, released in mid-April 2025, contains Volkswagen Group's Group Basic Software Requirements. It serves as a comprehensive framework that specifies essential standards for developing vehicle-related software and emphasizes compliance with rigorous testing and cybersecurity protocols, reflecting the growing importance of software in automotive performance and safety.

• Supplier Evaluation: Supplier Evaluation refers to the systematic assessment of supplier performance concerning quality, reliability, and compliance with Volkswagen's standards. The 2025 Quality Framework Agreement mandates detailed documentation of these evaluations, which include checks on incoming goods and compliance with approved specifications, ensuring only quality components are integrated into vehicles.

• Cybersecurity Protocols: Cybersecurity protocols within LAH.893.909 require that all vehicle-related software undergoes strict cybersecurity measures during development. These protocols include incident management, risk analysis, and the establishment of secure software architecture, reflecting the contemporary need for protection against cyber threats in increasingly connected automotive technologies.

• Continuous Improvement: Continuous Improvement is a systematic approach aimed at enhancing organizational processes, products, or services over time. As defined in the context of VW's supplier directives, this principle emphasizes the need for suppliers to not only meet established standards but also foster an organizational culture focused on ongoing quality enhancements and operational efficiencies.

• Performance Specification: Performance Specification outlines the expected operational parameters and functions that products must meet within the automotive sector. As part of VW's meticulous quality framework, these specifications play a critical role in guiding suppliers to achieve the required standards for safety and performance, ensuring their products align with customer expectations.

• Agile Practices: Agile practices refer to iterative development processes that emphasize flexibility and quick adaptation to changing requirements. In the context of the LAH.893.909 specification, suppliers are encouraged to adopt these practices to respond swiftly to VW's evolving software demands, ultimately enhancing collaboration and efficiency within the development lifecycle.

• Formel Q: Formel Q is a framework established by Volkswagen to set quality standards and assess compliance among suppliers. Particularly relevant with the incorporation of the 'formel-Q-konkret' elements into the 2025 Quality Framework Agreement, it serves as a reference for suppliers to understand VW's expectations regarding quality assurance, documentation, and accountability.

• Procurement Specifications: Procurement Specifications are detailed requirements set by Volkswagen for the parts and components supplied by manufacturers. As mandated by the 2025 Quality Framework Agreement, these specifications include identity checks and compliance verification to ensure that only approved components are procured, thereby shielding the supply chain from quality risks.

Source Documents

• Group Basic Software Requirements - VWgroupsupply.comhttps://www.vwgroupsupply.com/one-kbp-pub/media/shared_media/documents_1/einkaufsbedingungen/cariad/mitgeltende_unterlagen_oeb/konzern_grundanforderungen_software_lah_893_909/Group_Basic_Software_Requirements_LAH_893.909.pdf
• VOLKSWAGEN AG - Quality framework agreement - Calidadhttps://notasdecalidad.files.wordpress.com/2011/06/formel-q-quality-framwork-agreement-2001.pdf
• Formel Q – Key Quality Requirement for Cooperation with VW ✅https://www.automotivequal.com/formel-q-fundamental-quality-requirement-for-cooperation-with-vw-customer/