Roughly explained SVM is where ODIS which is the VAG diag machine connects to a server at the factory in Germany and it then can code all control units to the vehicle, even if its a changed part number which is very common now.
especially parts like steering column control units / slip ring etc.
Message Thread VAG SVM (software version management) # - Chris Angus November 24, 2015, 11:34 am
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