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Volkswagen’s recent $5 billion joint venture with Rivian has caused unrest within its software division, Cariad. The partnership, announced in June, came after delays and budget overruns at Cariad pushed back the release of key VW, Audi, and Porsche models by nearly two years. Peter Bosch, tasked with turning around Cariad, and his team were excluded from the negotiations, further intensifying concerns within the division.
Cariad employees, unaware of the deal until it became public, now face uncertainty about their future, with some fearing their integration into the new joint venture. This partnership underscores the importance of software in modern vehicles, shifting the focus from German-engineered engines to advanced driving technology. It also highlights governance issues within VW, which has struggled to address failures at Cariad and adapt to consumer demands, particularly in China.
The discontent at Cariad reflects broader concerns about VW’s ability to compete with software-centric EV leaders like Tesla and BYD. The company has invested nearly €12 billion in Cariad since its inception but has faced numerous setbacks due to internal bureaucratic struggles. While analysts see the Rivian partnership as a cost-effective solution, it remains to be seen whether VW can overcome its cultural challenges and successfully integrate Rivian’s agile, start-up mentality into its operations.
Check out the full article over at the Financial Times.