Volkswagen AG is set to revamp its software unit, Cariad, by replacing its current leadership with a team of trusted executives. The move comes as the German automaker's new CEO, Oliver Blume, seeks to resolve the internal discord and overloading that have led to extensive delays and significant software glitches for Volkswagen's ID electric model range, as well as pushing back several electric vehicle (EV) models at Porsche and Audi.
According to sources familiar with the matter, Peter Bosch, the current head of production at VW luxury brand Bentley and a former Oliver Wyman consultant, is expected to lead Cariad. The unit's board will also see the addition of two former Porsche managers, including Sajjad Khan, the current Porsche software chief. The changes are set to be approved by Cariad's supervisory board later on Monday.
Cariad was established under ex-CEO Herbert Diess with the ambitious aim of creating a scalable EV software platform entirely in-house. However, the unit's overloaded task list resulted in delays with software platforms, causing significant setbacks for several EV models. Under Blume's leadership, Cariad has narrowed its focus to delivering the software architecture for models like the Audi Q6 e-tron and Porsche's electric Macan, which have already been delayed by at least two years. Plans for a cross-brand platform, which was meant to bolster Volkswagen's Trinity project and deliver self-driving capabilities, have been pushed back.
The overhaul of Cariad's leadership is a crucial step for Volkswagen, as it seeks to establish itself as a leader in the EV market. The company has set ambitious targets for its EV sales, with plans to sell one million EVs annually by 2025. However, achieving these targets will require the resolution of the software issues that have plagued the company's EV rollout so far. With the new leadership team in place, Volkswagen will be hoping to get its EV program back on track and deliver on its ambitious goals.