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VW’s Cariad Software Division Is Doing Better Now: CEO
With losses of over $7.5 billion in three years, Cariad was responsible for the delayed launch of the Porsche Macan EV.
Before being appointed CEO of Cariad in 2023, Bosch was Bentley’s CEO. He immediately started looking for ways to cut costs and, more importantly, reduce the division’s overreliance on external suppliers.
This year, Cariad will lay off 1,600 people, but at the same time, the Volkswagen Group unit will hire new talent to take control of as much code as possible. “In software, with its fast development cycles, we have to work directly on the code,” Bosch said. “Our employees know, write, understand, and change the code — even via over-the-air updates.”
. . .
Another big change was to end the one-size-fits-all approach to vehicle software. In China, the development, design, and production are all local to meet consumer expectations and regulatory demands. In North America, Cariad is mostly staffed by Rivian personnel, as part of Volkswagen Group’s joint venture with the California EV startup.
For now, Cariad is focusing on cloud infrastructure, advanced driver assistance systems (ADAS) and infotainment. This approach led to significant cost savings. “We are now significantly cheaper per vehicle in the cloud than the competition,” Bosch said.
With losses of over $7.5 billion in three years, Cariad was responsible for the delayed launch of the Porsche Macan EV.
Before being appointed CEO of Cariad in 2023, Bosch was Bentley’s CEO. He immediately started looking for ways to cut costs and, more importantly, reduce the division’s overreliance on external suppliers.
This year, Cariad will lay off 1,600 people, but at the same time, the Volkswagen Group unit will hire new talent to take control of as much code as possible. “In software, with its fast development cycles, we have to work directly on the code,” Bosch said. “Our employees know, write, understand, and change the code — even via over-the-air updates.”
. . .
Another big change was to end the one-size-fits-all approach to vehicle software. In China, the development, design, and production are all local to meet consumer expectations and regulatory demands. In North America, Cariad is mostly staffed by Rivian personnel, as part of Volkswagen Group’s joint venture with the California EV startup.
For now, Cariad is focusing on cloud infrastructure, advanced driver assistance systems (ADAS) and infotainment. This approach led to significant cost savings. “We are now significantly cheaper per vehicle in the cloud than the competition,” Bosch said.
