Volkswagen Board Displeased With Current Software Situation

Matt Posky
by Matt Posky

Last week, Volkswagen’s supervisory board reportedly told management that it needed to work on improving the company’s software division. Though that should hardly be surprising considering how often digital glitches have delayed product launches and forced the automaker to issue sweeping recalls.

Software gremlins stymied the launch of numerous ID-badged EVs, the Mk8 Golf, and a handful of other vehicles from VW Group’s many subsidiaries. But the issues have persisted, with customers citing electrical troubles and noting that the automaker’s novel touchscreen interfaces are brutally unresponsive. Some of the problems were deemed so heinous that the company eventually recalled literally every current-generation Golf sold within its native Germany. But it’s going to have to do a lot more if it’s serious about leveraging computer code as the cornerstone of an evolving business model and the board of directors seems keenly aware of that fact.

While VW has never been known for delivering automobiles devoid of electrical problems, the issue seems to have worsened since its diesel emissions scandal in 2015. In fact, Volkswagen Group initially responded to accusations of regulatory cheating by suggesting there was simply something wrong with the relevant software. But this turned out to be a convenient excuse for what was later determined to be clever code that was intentionally designed to cheat its way through increasingly stringent testing protocols.

Since then, the auto group has been pivoting toward electric models in the hopes that it can stay on the good side of government regulators and environmentalist mobs. Though software issues have continued to plague the company. Granted, an unresponsive touchscreen is hardly unique for the industry. However, Volkswagen’s issues extended into connectivity features, disabling over-the-air updates and new sources of revenue. While most automakers are currently trying to figure out how to leverage the vehicles connected to the internet for profit (e.g. customer data harvesting, marketing opportunities, hardware lockouts, and downloadable features), German automakers are arguably leading the charge.

Well, they’re trying to anyway.

Volkswagen’s software rollout went rather badly, resulting in Audi being tapped to head the group’s software development efforts in 2020. Now, according to Reuters, the supervisory board wants to see management deliver a totally reworked strategy. There will reportedly be a meeting ahead of the summer break, with top-level leadership expecting real solutions to VW’s ongoing software troubles. However, it sounds as though there may be some confusion as to what’s expected from its own engineers and Cariad — the automaker’s multinational software subsidiary.

From Reuters:

Volkswagen has called its software division, which is the central element in its autonomous driving push, “the most ambitious project of our entire industry to tap into the most relevant profit pools of the future”.

Cariad plans to challenge existing software incumbents, including Apple and Tesla, but has hit bumps in the road, which could become a problem for VW boss Herbert Diess, who is responsible for the unit on the group’s management board.

[Der] Spiegel first reported the news, not citing where it obtained the information, adding that the problems at Cariad, which have caused delays to product launches at Europe’s top carmaker, had been discussed at a supervisory board meeting on May 11.

Volkswagen Group has yet not commented on the matter and likely won’t until there’s a compressive strategy in place. After which, you can expect numerous corporate announcements explaining how those pesky software glitches have finally been dealt with. Though something tells me that VW and friends might be better off taking their foot off the throttle of progress for a time so it can focus on the fundamentals. Hurriedly transitioning toward a lineup of perpetually connected, all-electric vehicles by 2030 probably isn’t a goal worth pursuing if the resulting products are plagued with issues or stranded on assembly lines because of component shortages and bad computer code.

But even this assumes there will be widespread acceptance of EVs among the middle-and-lower classes. In truth, Volkswagen will need to court drivers in a way that makes electric vehicles appear truly desirable. Electrified range, especially when it’s tied to Europe’s Worldwide Harmonized Light Vehicle Test Procedure (WLTP), are frequently optimistic representations of what’s possible under real-world conditions. Despite making major headway on the global market, EVs are still viewed by many as niche vehicles for well-heeled people who don’t need to drive long distances. While the industry is working to change that by improving its range, Volkswagen has seemingly languished behind the curve.

Worse still, the vehicles themselves are becoming increasingly politicized. Part of this is unavoidable due to EVs being intrinsically tied to tightening government regulations and sizable subsidies. But it’s not going to help sales when a large percentage of the population feels like alternative-energy powertrains are being forced into their respective driveways. Again, these aren’t problems that are unique to Volkswagen. It just happens to be one of the first legacy automakers to stake its entire future on going electric with a strong emphasis on cutting-edge software. Someone probably should have told the company that it’s unwise to declare victory before the battle has begun. VW is now playing catch up while the whole world takes note of its lackluster progress and really only has itself to blame.

[Image: Volkswagen]

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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  • Dimwit Dimwit on May 29, 2022

    The irony is VW was renowned for it's HVAC simplicity. The MKIV models were robust, simple controls that worked extremely well. How the mighty have fallen. The big problem with the big manufacturers as they go into EV's, they look for the path. Nobody wants to go too wild because that doesn't sell. So, who's the leader in EV's. Tesla. Ok, do that. Large screen because that is what everyone wants, right? Glass roofs. If Tesla comes out with another innovation to their designs it'll be slavishly followed because none of the others have confidence in their own direction.

  • Arthur Dailey Arthur Dailey on May 30, 2022

    Those who owned air cooled VW's laugh at your modern HVAC concerns.

  • Joe This is called a man in the middle attack and has been around for years. You can fall for this in a Starbucks as easily as when you’re charging your car. Nothing new here…
  • AZFelix Hilux technical, preferably with a swivel mount.
  • ToolGuy This is the kind of thing you get when you give people faster internet.
  • ToolGuy North America is already the greatest country on the planet, and I have learned to be careful about what I wish for in terms of making changes. I mean, if Greenland wants to buy JDM vehicles, isn't that for the Danes to decide?
  • ToolGuy Once again my home did not catch on fire and my fire extinguisher(s) stayed in the closet, unused. I guess I threw my money away on fire extinguishers.(And by fire extinguishers I mean nuclear missiles.)
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