Volkswagen Group is set to dismiss all but one of the executive board members at its software division Cariad next week to try to resolve development problems, a person familiar with the matter told Reuters.
The unit, which was set up under former VW Group CEO Herbert Diess. has exceeded its budget and failed to meet goals, contributing to Diess’ departure and replacement by Oliver Blume last September.
Cariad’s supervisory board is expected to sign off on the dismissals in a meeting next week, the source said on Saturday, adding that only the unit’s head of personnel, Rainer Zugehör, might stay on.
A VW spokesperson said the company is analyzing Cariad and its projects.
A number of decisions have been made, but no decisions on personnel, the spokesperson said, adding that Cariad and vehicle software development remained integral to VW Group’s strategy.
The problems at Cariad have delayed work on important new models including the full-electric version of the Porsche Macan and the new Audi Q6 e-tron.
The planned launch of company-wide structural car software, initially designed to enable the fourth of five levels of autonomous driving from 2026, has been postponed by two years.