VW delays Porsche Macan EV platform, cuts jobs amid software struggles

The drama at Volkswagen’s Cariad unit continues. VW plans to chop round 2,000 jobs whereas delaying the (already delayed) new software program structure due for use in upcoming Porsche and Audi EVs.

In line with German information outlet Manager Magazin, the board of administrators permitted the plan at a gathering this week.

As reported, the job cuts on the software program unit are anticipated to start out subsequent yr, extending into the top of 2025, citing VW Group lead managers.

Volkswagen’s new 1.2 software program, set to debut within the new Porsche Macan EV and Audi Q6 e-tron, is being delayed by 16-18 weeks. In the meantime, the full-scale 2.0 platform is being fully redeveloped.

The subsequent-gen platform, anticipated to roll out in 2025, is promised to drastically improve effectivity by unifying software program stacks.

Volkswagen’s SSP platform, which was deliberate because the “single future spine,” can be being pushed again. The SSP platform was anticipated to scale back prices, enabling a margin on par with gas-powered counterparts.

VW job cuts sign software program, EV troubles persist

Though the plan nonetheless must be permitted by the Works Council (which has negotiated job ensures till mid-2025), the report suggests VW’s software program struggles are ongoing.

Volkswagen’s Cariad unit has been dysfunctional for a number of years. The unit’s struggles have even been blamed for former VW Group CEO Herbert Diess’s departure.

Diess arrange Cariad in 2020 to compete with Tesla and advance VW’s electrical car software program. Nonetheless, poor execution led to delayed launches (just like the Porsche Macan Ev) and buggy rollouts.

Oliver Blume, who took over as VW CEO final September, made it a precedence to show issues round, however the unit’s struggles proceed.

Volkswagen hired Sanjay Lal, a former Tesla and Rivian government, to assist lastly advance the unit’s software program platform earlier this month. In line with Bloomberg, Lal will lead a brand new software program design hub at Cariad.

The hubs initiatives will first be used on two EVs, an Audi and a VW mannequin. Ultimately, they are going to be used throughout all VW manufacturers.

VW additionally appointed Peter Bosch as Cariad CEO on June 1. Bosch was beforehand liable for manufacturing at Bentley. He’s additionally the VW consultant on the board at Scout Motors.

Electrek’s Take

Europe’s largest automaker is falling behind within the digital EV period. VW cut production and jobs at two German crops final month as a consequence of slowing demand for its electrical fashions.

Though Volkswagen delivered 531,500 EVs within the first nine months of the yr, up 45% YOY, the corporate is falling behind in key markets. For one, VW’s CFO and COO Arno Antiltz defined on Thursday’s media name that EV orders are all the way down to 150,000 in Europe. That’s 50% decrease in comparison with final yr’s complete of 300,000.

Europe was by far VW’s greatest EV market, accounting for 61% (341,100) offered by means of September.

Hildegard Wortmann, who oversees VW’s advertising and gross sales, blamed a “lower-than-expected total market development” earlier this month.

In the meantime, Tesla and a number of other Chinese language EV makers like BYD are proving it’s not the market. It’s the car. Tesla’s Mannequin Y was the top-selling car (fuel or electrical) in Europe in September. It’s additionally on its option to changing into the best-selling car globally this yr – a primary for an EV.