VW daughter Cariad in trouble again

For a specific time already, Volkswagen’s software division Cariad has been behind schedule. The new solution for the problem is striking:  instead of catching up with more staff, there is a threat of large-scale job cuts and further delays, says a media report.

According to reports by the German publication Manager Magazin, new Cariad boss Peter Bosch wants to cut 2 000 of the 6 500 German jobs at Cariad. Bosch was brought in as a reorganiser to the still-young but fast-growing software unit.

Recently, the former Bentley executive is said to have presented his strategy for Cariad to VW Group’s board members. According to Manager Magazin, internally, the word used is ‘rescue plan’. Once again.

Three key points

At the meeting, Peter Bosch presented three key points. Firstly, he wants to cut 2 000 of the 6 500 jobs in Germany.  Details on locations or departments are only scarcely known; it will probably initially mainly affect administration.

Secondly, under Bosch’s predecessors, Cariad had built up a network of around 40 company holdings. Here, the future viability is to be “examined”. Half of these holdings are to be sold off again, according to the goal. In this way, Bosch wants to be able to restructure the organization and make it more streamlined.

The third point was that there would be further delays. The market launch of the technically kindred electric models Audi Q6 e-tron and Porsche Macan has been postponed several times due to delays in software development. There is now a further delay of 16 to 18 weeks.

Nothing will happen before spring 2024,” writes Manager Magazin. This fits in with the fact that, according to other media reports, the presentation of the Audi Q6 e-tron and allegedly also the Porsche Macan E will take place in March 2024 at the earliest. Both models using the PPE platform will have the E3 1.2 software.

Further delays

But delays are already becoming apparent with other software versions as well. The future software E3 2.0, which was initially intended for all models of the VW, Seat, Cupra, and Skoda brands from 2025 and later for all Group vehicles, is even being completely redeveloped.

The future SSP vehicle platform, the successor of the PPE,  will thus be “largely rethought” once again. The previous development costs of around 1,5 billion euros will, consequently, be “lost”. These are hard words (again) concerning VW’s software arm, but apparently, VW Group CEO Oliver Blume supports the plan.

Workers not happy at all

Negotiations with the works council are one of the steps to be taken to push through the planned job cuts. There is an employment guarantee until the middle of 2025, but Bosch wants to cut jobs as early as 2024.

The first reaction from the works council is hardly surprising: cutting almost a third of the jobs is incomprehensible, they say. “It is now a matter of getting the software for the new models ready as quickly as possible,” says Stefan Henze, the works council member responsible for Cariad. “We need every man and woman here.” To be continued.