Layoffs at VW’s Cariad add to the delay in software release in Porsche and Audi Models. Volkswagen’s Cariad software unit will postpone the launch of its new software architecture yet again due to a large round of layoffs.
Layoffs at VW’s Cariad Add to the Delay in Software Release
Cariad, which was launched three years ago by Volkswagen, has announced plans to lay off 2,000 employees, according to the German magazine Manager Magazin. The layoffs will push back the release of Volkswagen’s software architecture 1.2 by 16 to 18 months.
The software 1.2. platform, which is being developed for the Porsche Macan EV and the Audi Q6 E-Tron, was supposed to be completed in 2022. When Peter Bosch took over in May, Cariad pushed the release date to the end of 2023 in order to be ready for 2024 VW models. Now, it appears that the software 1.2 platform will not be available in automobiles until at least 2025.
Volkswagen vehicles already have the software 1.1 version installed. Cariad is also working on a 2.0 version, an operating system designed for all VW Group brands. The 2.0 architecture was originally scheduled for a 2025 release, but due to recent layoffs, Cariad will now redevelop the software from the ground up.
VW Did Not State If the Layoffs Would Delay the Release of the Macan EV
VW did not state whether the layoffs would delay the release of the Macan EV, which is scheduled for early 2024. Volkswagen did not respond in time to provide clarification. Nevertheless, VW long struggled to launch software in its vehicles, putting it at an edge when competing with Tesla Ford, and General Motors’ software-defined vehicles.
Thus, this restructure may also have an impact on the next-generation Scalable Systems Platform, an architecture that VW hopes to use for EVs across its entire lineup, from VW hatchbacks to sporty Porsches according to Manager Magazin.
Aside from making smarter cars, software-defined vehicles allow automakers to add revenue streams through in-car entertainment and services. VW Group stated in 2021 that Cariad could generate up to €1.2 trillion ($1.4 trillion) in revenue by 2030 through subscriptions and other sales.
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