VW on the verge of software chaos: Blume under pressure and billions at risk!

VW on the verge of software chaos: Blume under pressure and billions at risk!

Things are simmering at Volkswagen (VW). The company is struggling with serious software problems that could not only cost billions, but also pose a real threat to CEO Oliver Blume. The condition is classified as “Code Red”, although the challenges have not just been on the table since yesterday. It is often said that VW needs to improve its software, but the reality is much more complex. So reported manager that Oliver Blume and his team were unable to get to grips with the software problems that had accumulated over the years and that lead to delays and simple functions.

These grievances not only endanger the competitiveness of the entire group, including the Audi and Porsche brands, but also put a strain on the already shaky trust in the market. In the summer of 2024, Blume entered into a partnership with the American start-up Rivian, which was intended to bring a breath of fresh air in the form of state-of-the-art software architectures. VW, on the other hand, contributed the financial strength to support it. But the air is getting thinner as Rivian itself is struggling with billions in losses and job cuts, raising questions about the solidity of this collaboration.

A desperate fight for connection

Frustration within VW's ranks is growing. Works council head Daniela Cavallo always asks critical questions about the current situation, while supervisory board head Hans Dieter Pötsch puts additional pressure on the CEO. Delays in important models such as the Audi A4 E-Tron and the Porsche K1 SUV cannot be ignored. There are now voices that doubt the quality of the Cariad software, which could come into play as a stopgap solution even though it had previously caused problems. The pressure on Blume to turn things around is getting higher and higher Car Motor and Sport thematised.

The situation is not made any easier by the fact that valuable models, the Audi Q8 E-Tron and the Porsche K1, are on the brink. The Q8 E-Tron will be taken out of production in February 2025, which will significantly limit the market offering. In addition, the introduction of new electric vehicles is lagging behind: the Macan EV is making slow progress and the updated Taycan is also failing to meet expectations.

Important projects on hold

The postponement of the prestige project Trinity, which was to be produced in Wolfsburg as an electric flagship from 2026 under former CEO Herbert Diess, is particularly problematic. Thanks to error-prone Cariad software, the entire project is stalled: recent reports even say that the introduction is now only planned for 2032! In the meantime, Californian software is to be used, while the original plan is being pushed back further and further.

VW sees itself on the right path in software development and speaks of progress in the RVTech joint venture, which employs over 1,300 people and is currently setting up a German branch. The focus is on electric vehicles, but developing them under current conditions is anything but easy. In the long term, all of the group's electronics architectures should converge, but it will still take some time before the efforts bear fruit Industrial magazine determines.