Software, China Competition and Poor Governance – Volkswagen’s Biggest Construction Site

Software, China Competition and Poor Governance - Volkswagen's Biggest Construction Site
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Volkswagen’s software unit was overwhelmed with too many tasks.


(Photo: DPA)

Düsseldorf When Herbert Dice takes over at the end of August Volkswagen Officially handed over to Oliver Bloom, he leaves a company to his successor amid the turmoil. Although the 63-year-old heralded the transition towards developing electromobility and software-based vehicles, there are major problems with implementation that are undermining the company.

One major reason: the transformation at Volkswagen is not a controlled process, but has become a disorganized major manufacturing site under Diess. Bleu anticipates several major construction sites the 54-year-old will have to deal with.

software

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

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