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Volkswagen Decapitated Its Cariad Software Subsidiary, Bentley Exec Named New CEO

Volkswagen announced it's firing the entire Cariad management team following chronic problems that caused many model delays. Volkswagen CEO Oliver Blume allegedly informed top managers of his decision and named Bentley's production boss, Peter Bosch, the new Cariad CEO.
Volkswagen decapitated its Cariad software subsidiary 13 photos
Photo: Bosch | Edited
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Volkswagen's software arm Cariad is the most hated division of the German car manufacturer. Cariad's problems have led to the delayed launch of the Porsche Macan and Audi Q6 e-tron and the derailment of the EV programs, including Project Trinity and Artemis. The problems also caused former Volkswagen CEO Herbert Diess to lose his job. It's safe to assume that the new CEO Oliver Blume would not want to share Diess's fate, so he tackled the problem head-on.

Blume announced to the current Cariad management team that they would soon be unemployed. The official announcement was shared with the media on Monday. Blume wants Bentley's production boss, Peter Bosch, to turn around the troubled software division Cariad. Bosch will replace Dirk Hilgenberg effective June 1. According to media reports, two other Cariad managers, CTO Lynn Longo and CFO Thomas Sedran, will also be replaced.

Peter Bosch, who was appointed Bentley's head of manufacturing in 2017, will also assume responsibility for Finance, Purchasing, and IT at the company. According to sources consulted by Reuters, Thomas Guenther, currently a senior vice president at Cariad, will join the board in a technology role, along with Porsche's software chief Sajjad Khan.

The shake-up is Blume's first significant restructuring since he became Volkswagen Group's CEO in September 2022. Volkswagen Group CEO is in the process of reviewing every aspect of the carmaker after taking over from Herbert Diess, and Cariad was the first to benefit. The move is not meant to overhaul Cariad's operations completely but to accelerate the current trend of developing new software in partnership with other companies rather than going alone.

Cariad has been set up under the management of Herbert Diess to challenge Tesla's domination in software. The aim was to develop the Group's future software platforms entirely in-house and reach SAE Level 4 autonomy for Volkswagen Group's vehicles. The project was not popular with Porsche and Audi. Both teams complained that the close integration would lead to development delays. Cariad also botched software development for the Volkswagen brand's ID. EV model range, which eventually led to the dismissal of Herbert Diess and the appointment of Oliver Blume as the Group's CEO.

Cariad was rumored to be closed down, but a Volkswagen Group executive told the Frankfurter Allgemeine Zeitung this is not possible. Without Cariad, all current projects would be frozen for at least a year. Volkswagen has no choice but to double down on Cariad and assign it an even more significant role in developing future software. For instance, Volkswagen announced plans for an integrated project house with Volkswagen and Audi brands to develop the next generation of software-defined vehicles.
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About the author: Cristian Agatie
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After his childhood dream of becoming a "tractor operator" didn't pan out, Cristian turned to journalism, first in print and later moving to online media. His top interests are electric vehicles and new energy solutions.
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