Source: VW will fire top executives from software unit Cariad

By Jan Schwartz

A person familiar with this matter told Reuters Saturday that Volkswagen plans to fire all but one member of its executive board at Cariad, the software division it owns. The move is intended to address development problems.

The unit, set up by former VW Group CEO Herbert Diess, has exceeded its budget and not met goals. This contributed to Diess leaving and being replaced by Oliver Blume in September last year.

Cariad’s supervisory board is expected to sign off on the dismissals in a meeting next week, the source said on Saturday, adding that only the unit’s head of personnel, Rainer Zugehör, might stay on.

VW spokesperson stated that VW was analyzing Cariad’s projects and plans.

The spokesperson added that Cariad software and vehicle development remains integral to Volkswagen Group strategy.

Cariad’s problems have caused delays in the production of important new models such as the Porsche eMacan and Audi Q6 etron.

The company’s planned structural software launch, initially intended to enable the fourth level of autonomous driving in 2026, was delayed by two year.

Business Insider was the first to report on the planned dismissals.

Hans Seidenstuecker & Barbara Lewis edited by Hans Seidenstuecker. Jan Schwartz reported from Hamburg. Ludwig Burger wrote the piece in Frankfurt.