VW said to plan job cuts, further launch delays at software unit

BERLIN -- Volkswagen Group plans to cut 2,000 jobs at its software unit Cariad as part of a restructuring plan that will see new software architectures delayed even further, a German business publication said.

The job cuts would take place from 2024 until the end of 2025, manager magazin reported, citing leading managers of the group.

The new 1.2 software architecture that is due to be used in the upcoming Audi Q6 E-tron and the Porsche Macan all-electric models will be delayed by 16-18 weeks, the report said, while the next level 2.0 architecture originally planned for 2025 is being completely redeveloped.

The Q6 E-tron is now expected to arrive in March instead of by the end of this year, Automotive News Europe sister publication Automobilwoche reported.

The Q6 E-tron is the first model on the newly developed PPE architecture that has an 800-volt system and faster charging times. It's a key pillar of Audi's product offensive to compete with electric offerings from Tesla and German rivals BMW and Mercedes-Benz.

VW Group's software-defined scalable systems (SSP) platform planned for the automaker's next-generation models starting with VW brand's Trinity electric flagship is also being redeveloped, manager magazin reported.

However, the plan still requires approval from the works council, which has negotiated job guarantees for workers until mid-2025.

"We don't accept this method of cutting jobs across the board. There is no concrete information on where positions should be cut in terms of structure and tasks," a VW works council spokesperson said.

VW Group appointed Peter Bosch, former production chief at Bentley, as Cariad's new CEO on June 1 in an effort to get the unit back on track.

A Cariad spokesperson declined to comment on the article, but said Bosch has been working on a "comprehensive transformation plan" for repositioning the company since the summer.

"The transformation planning is in its final stages and will be communicated once the relevant bodies have passed a resolution," added the spokesperson.