Volkswagen’s $5bn tie-up with US electric vehicle start-up Rivian has sparked dismay among staff at the German carmaker’s software division Cariad, with top executives sidelined in the sudden change of strategy.
The June agreement to set up a joint venture that will develop software for both companies’ cars followed budget overruns and setbacks at Cariad that pushed back the rollout of new VW, Audi, and Porsche models by nearly two years.
Peter Bosch, who was brought in last year to turn Cariad around, was not part of the talks that led to the deal. Sanjay Lal, a former Rivian executive hired by Bosch as chief software officer, has had to down tools on the architecture he was brought in to develop, said people close to him who added he and his team faced possible absorption into the new JV.