Volkswagen Restructures Software Development, Impacts Porsche

Volkswagen is centralizing the development of driver assistance systems and highly automated driving in Europe under a new organization, dubbed “OneTeam,” a move that directly impacts Porsche as a key brand within the group. The initiative aims to foster faster collaboration between Volkswagen’s software subsidiary, Cariad, and its individual brands, ultimately accelerating the pace of development.

The consolidation, formally launching in November, represents a further step in Volkswagen’s broader efficiency drive during its ongoing transformation, according to Group Development Chief Werner Tietz. The new unit will be led by Manuel Birke, Cariad’s technical chief for driver assistance systems, who will report to both the Audi and Cariad boards. This structure underscores Audi’s increased leadership role in the development process.

This restructuring is occurring alongside a significant reshaping of Cariad itself. Volkswagen CEO Oliver Blume is shifting away from extensive in-house development, opting instead for partnerships with external companies such as Xpeng in China and Rivian in the US. A previous collaboration with Bosch regarding automated driving functions was terminated in July. Cariad is now focusing on core technologies including driving dynamics software, cloud applications, and infotainment systems. The company has already reduced its workforce from approximately 6,500 to 4,300 employees since the end of 2023, and plans to cut around 1,000 additional positions.

The move reflects a broader industry trend toward streamlining software development and leveraging external expertise to meet the demands of increasingly complex vehicle technologies. While the filing does not detail specific financial impacts, the efficiency gains and accelerated development timelines are intended to improve Volkswagen’s competitiveness in the rapidly evolving automotive landscape. The restructuring's success will be measured by improvements in software release cycles, the integration of new technologies, and ultimately, market share.