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VW CEO lost his job over buggy software that delayed new models

It says a lot about the state of the auto industry and where it's going that software problems have cost the CEO of a carmaker his job. Volkswagen ousted Herbert Diess as chief executive officer after severe software-development delays set back the scheduled launch of new Porsches, Audis and Bentleys. This was untenable considering buggy software postponed the debut of VW’s initial rollout of ID models, and customers are still having to drop off their cars at the dealer for updates the company has struggled to make over the air. Sure, Diess also didnÂ’t do enough to make allies and became increasingly isolated due to his hard-nosed leadership style. In his push to transform the company into an electric-vehicle leader, he repeatedly clashed with labor leaders by warning VW was losing out to Tesla and needed to cut thousands of jobs. But failures at the carmakerÂ’s software unit Cariad ultimately eroded DiessÂ’s support from the powerful Porsche and Piech family that calls the shots. Back in December, VW overhauled its management board, stripping Diess of some responsibilities while tasking him to turn around Cariad. While thereÂ’s been a lot of re-arranging since then, Diess didnÂ’t manage to make the issues go away. Discord at Cariad has pushed back the rollout of important new models including the electric Porsche Macan, a high-volume sport utility vehicle for the division thatÂ’s planning an initial public offering in the fourth quarter. AudiÂ’s new line of Artemis EVs has been delayed by around two years to 2027. And VWÂ’s ultra-luxury brand Bentley may not be able to go all-electric by the end of this decade as planned because of the software issues, Automobilwoche reported earlier this month. “Taking over the ship at Cariad seems to have been DiessÂ’s downfall,” said Matthias Schmidt, an independent auto analyst based in Berlin. VWÂ’s solutions to challenges tend to reflect its status as an industrial behemoth: itÂ’s able to throw lots of money and people at its problems. But modernizing the company for the digital age is going to take bringing in talent and building skillsets outside its traditional zones of expertise. Drivers increasingly demand intuitive user interfaces and services that could create new revenue streams, if done correctly. “Software is the key to the future,” TeslaÂ’s Elon Musk tweeted when one of his followers asked about VW switching CEOs. Diess certainly didnÂ’t lack ambition.

Five cylinders, no waiting | 2018 Audi TT RS First Drive

A five-cylinder engine is an odd duck in the modern automotive world, so why put it under the hood of a sophisticated sports car like the 2018 Audi TT RS? We're posing this question to an engineer when a loud, guttural sound interrupts the conversation. A TT RS blasts by, growling and percolating as it shoots down the front straight of the historic Circuito del Jarama in Spain. Oh, that's why. The RS treatment brings the sound and the fury to the TT, transforming a cute, sporty little car into a sports car with mettle. With 400 horsepower channeled to all four wheels, a stiffer suspension, and styling flourishes like organic LED taillights, the RS makes for a big-time upgrade over the 292-hp TT S and the mild-mannered 220-hp TT. Who wants a four-cylinder, anyway? We're considering the five-pot's potential as we mash the throttle and explode onto Jarama, an old Formula 1 course that still looks ready to host top-level racing. There's a couple of long straights and lots of curves and elevation changes. Sure, it's a bit trite to praise a sports car after a few laps in a controlled setting, but the TT RS has legit performance chops. The engine sounds just as good inside the car as it does to spectators, and it's more satisfying since we're the ones provoking the five cylinders to anger as we approach triple-digit speed. It's all real, too. There's no pumped-in sound or fake flatulent exhaust. "It's the unadulterated sound of the engine – we didn't change it," says Philipp Ade, Audi technical project manager for powertrain. Speaking trackside through an interpreter, he admits the exhaust system adds resonance but also filters out other noises to produce a clean engine note. Trust us, you'll want to tune in. The five-cylinder is not a glorified sound check. It's a new engine developed for Audi's smaller performance cars, though the TT RS is the only one confirmed for the United States. The 2.5-liter mill uses aluminum for its block and crankcase and magnesium for the oil sump. This all results in a 57-pound weight loss compared with the old five-cylinder, which was last sold in the US market in the previous-generation TT RS for the 2012-13 model years. That car was brought to the states after a Facebook campaign. This time there was no doubt Americans have an appetite for the hottest TT. A non-enthusiast will wonder: why the fuss over a five-cylinder engine? To Audi and its band of loyal followers, it's a defining element of performance.

VW Group to split brands under four holding companies

The Volkswagen Group is planning a tremendous shift in its internal structure that will decentralize operations by splitting its 12 brands into four different holding companies. Here's the breakdown. Things will be split logically, considering the inter-sharing of parts, platforms, and engines. The Volkswagen brand, Seat, and Skoda make up a passenger vehicle division led by former BMW man Herbert Diess. Audi, which is tightly intertwined with Lamborghini and motorcycle manufacturer Ducati, will be managed by current Audi exec Rupert Stadler. Porsche and Bentley, which are already quite close, will be joined by Bugatti and run by Matthias Mueller. Finally, a commercial vehicles division will include Volkswagen Commercial, Scania, and Man. Former Daimler exec Andreas Renschler will take care of the big vehicles. The massive move, according to Automotive News Europe, is part of an internal VAG effort to move away from the structure established by ousted Chairman Ferdinand Piech, who favored a compact, but highly centralized, management structure to oversee the independent actions of the company's brands. Criticism of Piech's arrangement stemmed from the company's slow responses to changes in the market, ANE reports. The new structure should make for a more efficient, streamlined company that's better able to make crucial decisions. What are your thoughts? Should VAG decentralize, or did Piech have the right idea? Have your say in Comments.