Volkswagen Group CEO Oliver Blume is expected to fire the top three executives at the group’s Cariad software development division after it exceeded its budget and failed to meet goals.

According to Automotive News, quoting German business daily Handelsblatt, Peter Bosch will replace Dirk Hiligenberg as CEO of Cariad in June, while two other members of the division’s top management – chief technology officer Lynn Longo and finance director Thomas Sedran – will also be replaced. Additionally, Porsche’s software chief Sajjad Khan will join the board of Cariad, as reported by Bloomberg.

Peter Bosch, Cariad’s newly appointed CEO, is a veteran of the VW Group and has been Bentley’s head of manufacturing since 2017.

Gallery: VW ID.7 Debut

The troubles of Cariad surfaced in 2022 when media reports revealed that the software division was responsible for delaying the launch of the all-electric Porsche Macan, as well as the upcoming Audi Q6 e-tron.

Cariad was also responsible for the multiple glitches encountered on the first units of Volkswagen’s EVs, including the ID.3, ID.4, and ID.5, with some drivers posting footage online of full-on system freezes and unresponsive touchscreens.

After this top management reshuffle, the new CEO will restructure Cariad, which now employs about 6,000 people worldwide, as well as expand the group’s partnership with Intel’s Mobileye for developing automated driving systems.

In the past, Oliver Blume’s predecessor, Herbert Diess, wanted to make Cariad a global player in the tech field, including developing a scalable EV software platform completely in-house. However, sources at Porsche and Audi complained that Cariad was too involved with their own development processes, which caused delays and disagreements.

The aforementioned software platform, which was initially designed to enable at least Level 4 autonomous driving from 2026, has been postponed by two years, making room for rivals such as Mercedes-Benz to step in and showcase self-driving technology before VW.

As per Automotive News, Volkswagen is currently analyzing Cariad as a whole, as well as its projects, with several decisions already made. However, no decisions have been made regarding personnel, with the vehicle software development division remaining integral to VW Group’s strategy, according to a spokesperson quoted by Reuters.

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