VW Group Hands Software Development Over to Audi

Matt Posky
by Matt Posky

Volkswagen Group plans to transfer software development leadership to its Audi division following an embarrassingly high number of technical glitches on some of its upcoming products.

With the industry committed to making sure tomorrow’s cars more closely resemble today’s phones, some automakers have decided to do the brunt of their coding in-house. VW decided to increase the share of its software it’s responsible for — targeting 60 percent of all the code that goes into its products by 2025 — but problems cropped up en route to its destination.

Reports surfaced in 2019 that the company was having serious issues with its software. This delayed Audi EVs (though battery supply shortages were also claimed) before doing the same for Volkswagen’s ID.3 electric. The brand ultimately decided to launch that model lacking some functions with the promise that they’d be fixed later. But then the software headaches started affecting the Mk8 Golf, forcing the manufacturer to temporarily halt deliveries.

As everyone wondered exactly how the hell this could happen, staff noted that VW’s aggressive technological push forced it to rush some of the new software. It’s also encountered issues in procuring enough coders to turn things around in a timely manner after problems revealed themselves. “This is no longer a laugh,” an anonymous staffer told Süddeutsche Zeitung in March. “The [ID.3] is far from ready for the market.”

The EV will now ship in September with incomplete software, though introductory “limited editions” have already begun delivery. Regardless of which version customers purchased, VW has said neither will have all their features activated until later this year.

Depending on who you ask, Volkswagen Group’s software problems are either a horrible nightmare that runs the risk of killing the company or a manageable hiccup that will only slow the launch of a handful of vehicles. We’re inclined to believe the truth lies somewhere in the middle. The company certainly has demonstrated that there’s an issue, though we can’t say it’s untenable until we see how long it takes to fix the ID.3 and Golf.

Hysterically, Group CEO Herbert Diess claimed VW’s software would help it compete against Tesla in the world of electric vehicles during the most recent Frankfurt Motor Show.

“In the long run, I think we might have a bit of an advantage because of scale. On the hardware side, there is probably not so big a difference because they are are also have a dedicated electric platform and they’re quite big already for an EV manufacturer,” he said. “But when it comes to the next big thing, which is software, Tesla is strong in software — but software really is a volume game. If you do software, you have to use ten million devices, not one million.”

That’s to become largely Audi’s concern moving forward.

“The center of gravity for software development will move from Wolfsburg to Ingolstadt,” Diess said at a virtual conference hosted by PwC in Germany, per Reuters.

The company is also rumored to replace Christian Senger, an ex-BMW manager who currently runs VW’s new Car.Software unit. Senger was brought in to help the company spruce up its corporate image after nefarious software drove the 2015 emissions scandal, and is believed to be taking serious flak at present.

Maybe the company should bring those Dieselgate coders back in. Sure, they may have broken the law by intentionally tricking regulators, but their illegal software worked as intended.

[Image: Volkswagen Group]

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • Gedrven Gedrven on Jul 15, 2020

    A company with some of the most unnecessarily complicated and unfathomable engineering, with no regard for real-world maintainability, handing engineering over to their subsidiary who's even worse? What could possibly go wrong? Cars should not be designed by people whose entire professional education is based on technology that, in the event of failure, can simply be restarted without consequence.

  • Speedlaw Speedlaw on Jul 15, 2020

    If front wheels are moving and rear wheels aren't and steering wheel is stationary, turn on emission control.

  • CanadaCraig You can just imagine how quickly the tires are going to wear out on a 5,800 lbs AWD 2024 Dodge Charger.
  • Luke42 I tried FSD for a month in December 2022 on my Model Y and wasn’t impressed.The building-blocks were amazing but sum of the all of those amazing parts was about as useful as Honda Sensing in terms of reducing the driver’s workload.I have a list of fixes I need to see in Autopilot before I blow another $200 renting FSD. But I will try it for free for a month.I would love it if FSD v12 lived up to the hype and my mind were changed. But I have no reason to believe I might be wrong at this point, based on the reviews I’ve read so far. [shrug]. I’m sure I’ll have more to say about it once I get to test it.
  • FormerFF We bought three new and one used car last year, so we won't be visiting any showrooms this year unless a meteor hits one of them. Sorry to hear that Mini has terminated the manual transmission, a Mini could be a fun car to drive with a stick.It appears that 2025 is going to see a significant decrease in the number of models that can be had with a stick. The used car we bought is a Mk 7 GTI with a six speed manual, and my younger daughter and I are enjoying it quite a lot. We'll be hanging on to it for many years.
  • Oberkanone Where is the value here? Magna is assembling the vehicles. The IP is not novel. Just buy the IP at bankruptcy stage for next to nothing.
  • Jalop1991 what, no Turbo trim?
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