Carmaker Volkswagen is set to dismiss all but one of the executive board members at its software division, Cariad, next week in an effort to address development issues.
Cariad, established under former VW group CEO Herbert Diess, has exceeded its budget and failed to meet its targets, contributing to Diess’ departure and replacement by Oliver Blume last September.
The Cariad supervisory board is expected to approve the dismissals in a meeting next week, according to the source.
The only executive board member likely to remain is the head of personnel, Rainer Zugehör. A VW spokesperson stated that the German company is currently analyzing Cariad and its projects.
Although several decisions have been made, no personnel decisions have been finalized, the spokesperson added.
They emphasized that Cariad and vehicle software development remain crucial to Volkswagen’s group strategy.
Issues at Cariad have caused delays in the development of significant new vehicle models, including the Porsche e-Macan and Audi Q6 e-tron.
The launch of the company-wide structural car software, initially intended to enable level four autonomous driving by 2026, has been postponed by two years. Business Insider was the first to report on the planned dismissals.
