Blackberry will no longer have a research and development facility in Germany, upon a deal reached with Volkswagen AG on Thursday.
The agreement is part of the phone makers plans to collaborate with other auto manufacturers in hopes of becoming profitable again, a task the company hopes to complete by the 2016 fiscal year, according to The Wall Street Journal.
The 200 affected employees from the phone maker's Product Development Center in Bochum, Germany will now join Volkswagen's Infotainment GmbH division. Volkswagen also takes over Blackberry's research center and office leases to the company's various other buildings.
This will allow Volkswagen to make products drivers adapt to future upgrades in in-car infotainment systems. The company also hopes to relieve traffic congestion by enabling drivers to use the devices for coordinating lineups at shopping malls and gas stations. Blackberry would use software from its QNX systems Ltd division – the same kind Chrysler Group LLC, General Motors Co., and Bayerische Motoren Werke AG currently use.
"Connectivity will be a key feature of the car of the future. Many customers are expecting connected vehicles of a new dimension in terms of convenience and road safety," boasted Dr. Heinz-Jakob Neuber, a Volkswagen executive. "Around the globe, our customers' aspirations will change rapidly, leading to shortened cycles of innovation for systems and functions."
In another cost-saving measure, Blackberry reached a deal with an undisclosed buyer to sell over three million square feet of real estate space, and empty land in March 21, 2014 according to The Star. The tech giant will lease back some of the property.
"The successful sale of property in Canada will help us move toward our goal of continued operational efficiency," mentioned John Chen, Blackberry CEO. "BlackBerry remains committed to having a strong presence in Canada, and we continue to consider Waterloo home to our global headquarters."
