Cariad, Volkswagen Group’s software unit, has undergone significant improvements under the leadership of CEO Peter Bosch. In an interview with Automobilwoche, Bosch highlighted the progress made by the once troubled division. Previously known for causing delays in the launch of electric vehicles like the Porsche Macan and Audi Q6 E-Tron, Cariad has managed to turn the tide despite operating losses exceeding $7.5 billion in the past three years.
One of the most notable changes has been the enhancement of the infotainment systems in Volkswagen’s ID.3 and ID.4 models, which were initially plagued by performance issues. Bosch credited the team for overcoming challenges and delivering improved software solutions. He emphasized the reduction of costs and the technological advancements made by the division.
Upon assuming the role of CEO in 2023, Bosch took immediate action to streamline operations and reduce reliance on external suppliers. This year, Cariad plans to downsize by 1,600 employees while simultaneously recruiting new talent to increase in-house control over software development. The focus is on empowering employees to work directly on the code for faster updates and better integration.
Furthermore, Cariad has adopted a region-specific approach to software development, tailoring solutions to meet local demands. In China, the division operates with a local team to comply with regulations and consumer preferences. In North America, Cariad collaborates with Rivian as part of Volkswagen Group’s joint venture with the EV startup.
The division’s current focus lies in cloud infrastructure, advanced driver assistance systems (ADAS), and infotainment. By prioritizing these areas, Cariad has managed to achieve significant cost savings and position itself as a cost-effective cloud solution provider. Future plans include the development of more advanced automated driving systems and shorter development cycles to stay ahead in the rapidly evolving automotive industry.
Although the launch of a Level 4-capable autonomous driving software platform has been delayed, Cariad has formed partnerships with key players in the industry to expedite the development of highly automated driving systems. Collaborations with companies like Xpeng, Horizon Robotics, Rivian, and Bosch demonstrate Cariad’s commitment to innovation and growth in the software landscape.
In conclusion, Cariad’s transformation under Peter Bosch’s leadership showcases a promising future for Volkswagen Group’s software division. With a renewed focus on in-house development, cost efficiency, and strategic partnerships, Cariad is poised to make significant advancements in the automotive software sector.