VW’s New CEO to Overhaul Failing Software Unit

Volkswagen (VW), the German automobile giant, has been experiencing a series of setbacks due to software failures in its electric vehicles. The problem has been persistent since the launch of the VW ID.3 model in 2020, and it has been causing delays in the delivery of the company’s electric vehicles.

To address this problem, VW’s new CEO, Ralf Brandstätter, announced plans to overhaul the company’s software unit. In a recent press release, Brandstätter stated that VW would create a new software organization called “Car.Software.Org” to develop an operating system for all VW’s electric vehicles. The company aims to have the new system installed in all of its electric vehicles by 2025.

According to Brandstätter, the new software unit would bring together VW’s existing software teams and employees from other departments to create a centralized, independent software organization. The new unit would be responsible for the development of the new operating system and other software components, including the infotainment system, digital cockpit, and advanced driver assistance systems.

VW’s move to overhaul its software unit comes after the company experienced significant setbacks due to software problems. The company had to delay the launch of its ID.3 electric vehicle due to software glitches, which impacted the company’s reputation and resulted in a significant loss of revenue.

The software problems also affected VW’s new ID.4 electric SUV, which was launched in late 2020. The company had to recall nearly 5,000 units of the vehicle in the US and Canada due to software failures that could cause the vehicle’s rearview camera to malfunction.

VW’s decision to create a new software organization is part of the company’s broader plan to become a leader in the electric vehicle market. The company aims to sell one million electric vehicles annually by 2025 and become carbon-neutral by 2050.

The success of VW’s software overhaul will be crucial for the company’s future success in the electric vehicle market. A reliable and robust software system is essential for the proper functioning of electric vehicles, and VW’s recent software failures have highlighted the need for a more robust and comprehensive system.

In addition to the software overhaul, VW has also announced plans to increase its investments in digitalization and artificial intelligence. The company aims to invest 27 billion euros in digitalization and AI by 2025, with a significant portion of the funds dedicated to the development of autonomous driving technology.

VW’s software overhaul is a bold move, and the success of the new software organization will depend on the company’s ability to attract and retain top talent in software development. The company will need to invest heavily in talent acquisition and training to ensure that the new software unit has the necessary skills and expertise to develop a robust and reliable operating system for its electric vehicles.

In conclusion, VW’s decision to overhaul its software unit is a significant step in the company’s efforts to become a leader in the electric vehicle market. The move highlights the importance of reliable and robust software in the proper functioning of electric vehicles and underscores the need for car manufacturers to invest heavily in software development. If successful, the new software organization could help VW regain its reputation and regain its position as a leader in the automotive industry.