Israeli automotive tech company Mobileye will provide driving assistance software based on its SuperVision and Chauffeur platforms to VW's luxury brands such as Audi, Bentley, Lamborghini and Porsche.

The technologies, which later will be integrated by VW's software unit Cariad, include assistance systems for highway and urban driving, such as automated overtaking on multilane highways, automatic stopping at red lights and stop signs, and support in intersections and roundabouts.

"New automated driving functions will significantly boost convenience and safety," VW Chief Executive Oliver Blume said.

Mobileye is also set to supply further automated driving software to Volkswagen's commercial vehicles unit.

In future, the German carmaker aims to rely on its own complete in-house software system.

(Reporting by Christoph Steitz, writing by Andrey Sychev, Editing by Miranda Murray and Madeline Chambers)