Software, China competition and poor governance – the biggest construction sites at Volkswagen

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Volkswagen’s software unit was overwhelmed with too many tasks.

(Photo: dpa)

Dusseldorf When Herbert Diess officially hands over the top post at Volkswagen to Oliver Blume at the end of August, he will be leaving his successor a company in the midst of upheaval. Although the 63-year-old initiated the transformation towards electromobility and the development of software-based vehicles, there are major problems with implementation that are weakening the company.

A major reason: The transformation is not a controlled process at Volkswagen, but has become an uncoordinated major construction site under Diess. Blume expect several major construction sites that the 54-year-old has to tackle.

software

Probably the biggest and most pressing problem is the software issue. In the multi-brand Volkswagen group, there is a tangled mess with serious consequences. The VW Group will have to develop and maintain two parallel hardware-software architectures for a decade, between which there are hardly any synergies – a no go for experts in modern software development.

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