VW's Software Division, Cariad, Loses More $Billions

Discussion in 'Volkswagen' started by insightman, Mar 18, 2025.

  1. insightman

    insightman Well-Known Member Subscriber

    What a mess. VW, Audi, and Porsche have had to delay vehicle introductions by more than a year because of problems at Cariad, “The software powerhouse of Volkswagen Group.” The following numbers came from this InsideEVs article:
    VW Group’s Cariad Software Division Had A Bad Year. Again

    In 2023, Cariad posted an operating loss of $2.6 billion.
    In 2024, Cariad posted an operating loss of $2.64 billion.
    Over the past 3 years, the total loss is over $7.5 billion.

    Not for the first time, Cariad is laying off employees. This year, 1,600 people will be jetisoned. Desperate to get their EVs into production, VW had to fork over $5.8 billion to Rivian to get access to Rivian's EV software.

    VW created Cariad in 2020 to develop a uniform operating system and a uniform electrical architecture for the Volkswagen Group’s upcoming vehicles. Now, instead of a uniform anything, both Cariad and Rivian are developing software for the VW Group's EVs.

    I drove VW Golfs (well, actually, Rabbits) for years before switching to Honda and now my wonderful MINI Electric. I hoped that VW's ID.GTI concept would become a reality and become my next car, but that hope is fading, due to VW's slipping sales, labor problems in Germany, and the black hole for cash that is Cariad.
     
  2. Paul K

    Paul K Active Member

    It seems that "soft" ware is the hard thing to do. There also seems to be a lot of rushing of half baked products not fully tested into the market place. I don't see how laying off more employees from Cariad is going to help this situation unless VW ultimately plans to to bail out of this endeavour and just go with Rivian. I bought the first VW of my life 15 months ago; a 2023 id.4. Clunky software aside I'm really enjoying the car. I'll bet my chances of a major OS upgrade are close to nil. At least the software glitches experienced so far have been annoying rather than catastrophic. I haven't been stranded away from home or anything like that.

    The other big software issue is that most dealer techs in spite of "factory training" seem ill equipped when vehicles come in with tech problems. This applies across the board and not just VW
     
    insightman likes this.

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