Volkswagen's Software Division Overhauls Operations Amidst EV Platform Delays

Matt Brand
October 31, 2023
Buy a Car!
Find your perfect car with ease – click for a free, seamless journey with CarSauce and Motor Scout!

Volkswagen Group's latest strategic move involves a significant reduction in workforce at its software unit, Cariad, with 2,000 jobs slated for termination according to a report by insideev's and originally reported by German publication manager magazin

Audi Q6 Interior

This decision is part of a broader restructuring strategy aimed at refining the company's focus on future electric vehicle (EV) platforms. The board has endorsed these changes, which are expected to unfold from 2024 through the end of 2025.

The restructuring is set to impact the launch timelines of key software architectures. Notably, the 1.2 software architecture, essential for the Porsche Macan EV and Audi Q6 E-Tron, is now projected to face a delay of over a year. The more advanced 2.0 architecture, which was anticipated to be introduced in 2025, is now being redesigned from the ground up.

Audi Q6 eTron

The delays extend to the Scalable Systems Platform (SSP), a foundational architecture for a broad spectrum of EVs within the VW Group, which is also undergoing redevelopment. This platform is crucial for the integration of software and hardware in compact cars and high-performance vehicles alike.

Despite the delays, the works council, which has secured job guarantees until mid-2025, must still approve the restructuring plan. The council has raised concerns regarding the specifics of the proposed job reductions.

Volkswagen ID.3

Cariad, established in 2019 to unify software development across VW Group's EVs, has faced challenges, including budget overruns and missed launch targets. These issues have prompted a reassessment of leadership, with Peter Bosch now spearheading a comprehensive transformation plan since his appointment earlier this year.

The software complications have been a notable issue for Volkswagen, with customers reporting operational glitches in models like the ID.3, ID.4, and ID.5. These setbacks have placed VW Group's software development under scrutiny, especially as competitors in the German, American, and Chinese automotive markets forge ahead with integrated software systems that are critical for EV functionality.

Matt Brand
Matt Brand, the esteemed car critic from Car Sauce, offers unparalleled expertise on all things automotive. From new car releases to pre-owned options, he provides in-depth analysis and honest evaluations to guide readers through the car-buying process. Join us as he delves into the exciting world of motoring.

Other car news

Peugeot Australia Opens Pre-Orders for E-Expert Electric Van

Peugeot Australia now accepts pre-orders for the E-Expert electric van, with delivery starting in Q4 2024.
Matt Brand
May 21, 2024

Toyota Australia Resumes GR Yaris Orders and Implements New Allocation Policy

Toyota Australia resumes GR Yaris orders with a new "first in, first out" delivery policy for its GR models starting July.
Jacob Brooke
May 21, 2024

Jaecoo J7 PHEV Under Strong Consideration for Australia

Jaecoo J7 PHEV under consideration for Australia in late 2024. Potential powertrain offers 260 kW, 525 Nm, 4.1 L/100km, and 88km EV range.
Matt Brand
May 21, 2024

Sign up to our newsletter

Be the first to know when we drop new car reviews.

By clicking Sign Up you're confirming that you agree with our Terms and Conditions.
Thank you! Welcome to the Car Sauce community!
Oops! Something went wrong while submitting the form.