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Volkswagen shakes up Cariad software arm, again


VW Group has changed leadership at Cariad once again, just three years since the automaker created the software unit.

On Monday, Cariad’s board of directors replaced its CEO, Dirk Hilgenberg. with Peter Bosch, who was previously responsible for manufacturing at VW’s Bentley brand. Hilgenberg had been with Cariad since 2020. Bosch will take over the top spot on June 1.

VW has long struggled to release software on its vehicles. Those mistakes were one of the reasons VW Group CEO Herbert Diess lost his job in 2022. Cariad, formerly called the Car.Software Organization, was created to bring together the development of software to be used across its 10 brands. . Software version 1.1 is currently on Volkswagen vehicles. The program 1.2. The platform is being developed for Audi and Porsche cars, while version 2.0 will be an operating system designed for all VW Group brands.

Historically, software has been a pain point for the VW Group. Cariad was formed in 2020 in an attempt to reverse that course and develop software-defined vehicles that not only compete with Tesla, but also provide revenue-generating in-car entertainment and services. VW Group said in 2021 that Cariad could generate up to 1.2 trillion euros ($1.4 trillion) in revenue by 2030, through subscriptions and other sales. But the missteps have caused a series of reorganizations at Cariad and, in part, led to the firing of VW Group chief executive Herbert Diess in 2022.

“Last year, we drew up a ten-point plan for strategic and operational areas of action within the Volkswagen Group. A key element is the realignment of CARIAD, and we have already made good progress, VW Group and Cariad supervisory board chairman Oliver Blume said in a statement. “We are now establishing the next milestones to advance strategic, structural and personnel development. CARIAD focuses on the development of digital future technologies for the Group’s brands. We are picking up the pace and broadening our approach to partnerships. This is designed to combine our competencies with the best solutions on the market for the benefit of our clients. The result is an even closer vehicle and software development interaction.”

VW Group is in discussions with Hilgenberg and his team about possible new roles within the company, Blume said. He added that Bosch is the “right CEO at the right time” noting that he is a strategist, facilitator and team player.

VW Group is also adding two as-yet-unnamed “recognized” software experts to the board.


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