The companies said Thursday that the deal will shift about 200 BlackBerry employees in Bochum, Germany, to Volkswagen. The terms of the deal were not disclosed.
The move comes as the Ontario-based company looks to become profitable by its 2016 financial year.
BlackBerry has centralized most of its vehicle connectivity development at its QNX Software Systems division in Ottawa, Ontario.
Volkswagen will assume BlackBerry's offices leases at the Bochum University Center and the Design Support Lab.
BlackBerry Ltd., formerly known as Research In Motion, was once Canada's most valuable company with an $83 billion market value in June 2008, but the stock has plummeted since.