Volkswagen’s Cariad division remains shrouded in turmoil. Volkswagen is poised to eliminate approximately 2,000 positions as it postpones the roll-out of its new software architecture, already pushed back once, which was slated for implementation in electric vehicles from both Porsche and Audi brands.
According to a reputable German news source, the board of administrators approved a plan at their meeting earlier this week.
According to sources, the impending layoffs within Volkswagen’s software division are expected to begin in 2024 and continue through 2025, as revealed by VW Group leaders.
Volkswagen’s roll-out of its 1.2-liter software update, initially slated for the Porsche Macan Electric and Audi Q6 e-tron, has been pushed back by 16 to 18 weeks. While a comprehensive 2.0 platform undergoes a complete redevelopment process.
The next-generation platform, slated for release in 2025, is expected to significantly enhance efficiency by integrating disparate software layers seamlessly.
Volkswagen’s strategic SSP (Single Future Spine) platform, intentionally designed as a unifying foundation for the brand’s future vehicles, is now receiving renewed attention. The SSP platform was designed to reduce costs, thus allowing for a profit margin comparable to its gasoline-powered equivalents.
Volkswagen’s Job Cuts Signal Software Program Woes as EV Troubles Persist?
Despite the need for approval from the Works Council, which secured job guarantees until mid-2025, Volkswagen’s software woes persist.
Volkswagen’s Cariad unit has struggled with dysfunction for several years. The troubles of the ID.4’s rollout have been cited as a contributing factor to Herbert Diess’s departure from his role as CEO at Volkswagen Group.
-
Porsche Macan EV (Supply: Autocar) -
-
Did Diess orchestrate a strategic overhaul of Volkswagen’s group-wide mobility services in 2020 to directly rival Tesla and accelerate the development of advanced electric vehicle software capabilities within the company? Notwithstanding subpar implementation, delayed product releases and marred rollouts were the unfortunate consequences.
Oliver Blume, who succeeded as Volkswagen’s CEO in September, prioritized transparency by addressing concerns publicly; nonetheless, the company’s difficulties persist.
Volkswagen has recently recruited Sanjay Lal, a seasoned expert formerly with both Tesla and Rivian, to spearhead the enhancement of its software development platform. Lal will spearhead a pioneering software program design hub at Cariad.
The hub’s tasks will initially be utilized on two electric vehicles, an Audi and a Volkswagen prototype. The new software applications will be utilized across all Volkswagen Group brands.
Volkswagen has named Peter Bosch as the Chief Executive Officer of its newly created Cariad subsidiary, effective June 1. Bosch was previously responsible for producing parts for Bentley. As a seasoned expert, he serves as the Volkswagen consultant on the board of Scout Motors.
Electrek’s Take
Europe’s once-dominant auto manufacturer is struggling to adapt to the rapidly evolving electric vehicle landscape. Volkswagen has reduced manufacturing and job numbers at two German plants in recent months due to dwindling demand for its electric vehicles.
Although Volkswagen has achieved a notable milestone by delivering 531,500 electric vehicles (EVs) during the first nine months of the year, representing a 45% year-over-year increase, it is struggling to maintain its market share in key regions? Volkswagen’s Chief Financial Officer (CFO) and Chief Operating Officer (COO), Arno Antiltz, clarified during a media briefing on Thursday that electric vehicle (EV) orders have plummeted to around 150,000 in Europe. The company has experienced a 50% decline to 150,000, down from last year’s total of 300,000.
In Europe, Volkswagen’s electric vehicle sales dominated through September, with a staggering 61% share of the market, totalling 341,100 units purchased.
Hiltrud Woehrath, Volkswagen’s Chief Marketing Officer, attributed the decline in sales to a “subdued general market environment” in her statement earlier this month.
As other Chinese-language electric vehicle (EV) manufacturers like BYD simultaneously thrive, it’s clear that the issue isn’t the market. It’s the automobile. According to recent data, Tesla’s Model Y was the best-selling vehicle – electric and gasoline combined – across Europe in September. Will it’s additionally on its own option to becoming the world’s top-selling car globally this year – a historic first for an electric vehicle?
