Volkswagen reorganizes software Cariad again

Three years after launching Cariad, VW Group has changed its leadership again.

On Monday, Cariad’s board replaced CEO Dirk Hilgenberg with VW’s Bentley manufacturing chief Peter Bosch. Hilgenberg joined Cariad 2020. Bosch will lead June 1. Restructuring eliminated CFO Thomas Sedran and CTO Lynn Longo.

VW has struggled to launch vehicle software. These mistakes cost VW Group CEO Herbert Diess his job in 2022. In 2020, Car.Software Organisation became Cariad to develop software-defined vehicles that compete with Tesla and offer in-car entertainment and revenue-generating services. VW Group predicted in 2021 that Cariad could generate €1.2 trillion ($1.4 trillion) in subscriptions and other sales by 2030. Cariad’s missteps and delays led to Diess’ dismissal.

Volkswagens use software 1.1. The 2.0 platform will run all VW Group brands, while the 1.2 platform is for Audi and Porsche cars. However, efforts are two years behind. 2022 was the deadline for software 1.2. Cariad is finishing it this year for 2024 VW models.

One source familiar with Cariad, which employs more than 6,000 people, said the program was over budget and behind schedule, putting pressure on the leadership. Bosch is a VW Group executive and turnaround expert.

Last year, we created a ten-point Volkswagen Group operational and strategic plan. “One key element is the realignment of CARIAD, and we have already made good progress,” VW Group and Cariad supervisory board chairman Oliver Blume said. “We are setting new strategic, structural, and personnel development milestones. CARIAD develops Group brand digital future technologies. We’re accelerating and expanding partnerships. This combines our expertise with the best market solutions for our customers. Software-vehicle development interaction increases.”

Blume said VW Group is discussing new roles with Hilgenberg and his team. He called Bosch the “right CEO at the right time” and a strategist, enabler, and team player.

VW Group is adding two “acknowledged” but unnamed software experts to the board.