December 7, 2023

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Volkswagen Group plans to cut 2,000 jobs at Cariad, and future electric vehicle platforms face delays

Volkswagen Group plans to cut 2,000 jobs at Cariad, and future electric vehicle platforms face delays

The restructuring is expected to affect the introduction of new software on the Porsche Macan EV and Audi Q6-E-Tron.

2023 Volkswagen ID.4

Volkswagen Group has decided to cut 2,000 jobs at its Cariad software division as part of a strategic restructuring plan, setting off a chain reaction of delays in the development of future electric vehicle platforms, a German publication reported. Manager’s magazine I mentioned yesterday.

He said that the group’s board of directors agreed to the reduction, which will occur between 2024 and the end of 2025. Manager’s magazineQuoted from the group’s senior executives. However, the plan still requires approval by the labor council, which guarantees job opportunities for workers until mid-2025. Reuters mentioned.

Cariad, founded in 2019 within the VW Group, is responsible for building a unified software platform and architecture for all future electric vehicles of the VW Group.

Due to the restructuring, software architecture 1.2, which was originally scheduled to debut on the Porsche Macan EV and Audi Q6 E-Tron, will be delayed by 16 to 18 months. The Level 2.0 architecture, initially scheduled for 2025, will be redeveloped from scratch.

Porsche has confirmed a launch date for the Macan EV in early 2024 InsideEVs It even showed off a prototype in California earlier this month. It’s not clear whether the latest announcement will impact the rollout and delay release dates. The Volkswagen Group and Cariad did not immediately respond to our request for comment at the time of publication.

The refactoring affects the next generation Scalable Systems Platform (SSP) as well, which is also being redeveloped. SSP is a next-generation architecture that the VW Group intends to use for a wide range of electric vehicles, from VW-badged compact hatchbacks to high-performance Porsches.

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Volkswagen’s software issues have been widely publicized, with users reporting system freezes and unresponsive touchscreens on the ID.3, ID.4, and ID.5. After going over budget and falling short of targets, Volkswagen Group CEO Oliver Blume made sweeping changes at the top management level at Cariad early this year. Its new CEO, Peter Bush, has been working on a “comprehensive transformation plan” since the summer, according to what the British newspaper “The Independent” reported. Reuters.

Integrated software architectures are an integral part of modern electric vehicles. It depends not only on the software of the infotainment systems, but also on the electric motors, batteries, electrical systems, safety features and driver assistance systems. Most German, American and Chinese automakers seem to be ahead in this area, but the Volkswagen Group seems to be on a bumpy road since introducing the first ID cars.