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Cariad: VW’s software project is years behind

Immature and too late: The Volkswagen Group wanted to score points with its own Cariad software. Now the division has become the black sheep.

It’s not a single number that makes this McKinsey analysis so devastating for Volkswagen. It’s the sum of its parts. By 2026, the introduction of the new software architecture by VW’s Cariad subsidiary will cost around 3.5 billion more than originally estimated. Over the entire product life cycle (i.e., until 2039), it will be €9.2 billion more. In addition, there will be losses for individual brands and models. Around €2.5 billion to €3 billion will be incurred due to delays in Porsche’s new software architecture alone. Image problems and possible loss of market shares have not even been factored in.

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