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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.

Lamborghini could be sold or spun off from the Volkswagen Group

Volkswagen is reportedly considering a sale or stock listing for its high-end Lamborghini brand. The German automaker is looking to fold the Italian supercar brand into a separate legal entity, reports Bloomberg, which cites "people familiar with the matter" who don't want to be identified "because the deliberations are confidential and no decisions have been made." Any of this sound familiar? The goal of spinning off Lamborghini would be to stockpile more cash and other resources for VW's massive planned push into electric vehicles. Back in March, reports circulated that Volkswagen's "Vision 2030" corporate plan might include plans to focus on the brand's core brands — VW, Audi and Porsche. That means the futures of fringe players like Lamborghini, Bentley, Bugatti, motorcycle brand Ducati and design firm Italdesign (and note this isn't a comprehensive list of brand's under the expansive VW Group umbrella) are up in the air. VW, according to the report, is targeting a market value of $220 billion, which is a big jump from the brand's current $89 billion valuation. Bloomberg pegged Lamborghini's valuation at around $11 billion back in August, buoyed by sales and profits generated by the introduction of the Urus sport utility vehicle. On the flip side, Lamborghini is currently grappling with how best to update its supercar lineup in the face of ever-increasing emissions regulations.

Volkswagen rolls out all-new Polo R WRC

Volkswagen may have ruled out producing a road-going Polo more potent than the new GTI, but on the rally stage, the Polo R WRC has proven absolutely dominant. Introduced to the World Rally Championship in 2013, the Polo R won ten out of the baker's dozen rallies in its debut season, and all but one last year to win both titles two years running. That's quite an act to follow, and the task falls to the machine you see here. The new second-generation Polo R WRC was just revealed at Autostadt in Wolfsburg. The rally machine has been substantially reworked for 2015, with a new livery, new bodywork and new oily bits. In fact, Volkswagen says it has revised three quarters of the components, and while it has not yet detailed the "many new ideas [implemented] under the bonnet," it has identified the hydraulic gearbox as "the biggest innovation." Further details are still to come, but this is our first look at the new machine with which Sebastien Ogier, Jari-Matti Latvala and Andreas Mikkelsen – who finished last year's championship in first, second and third, respectively – will tackle this year's championship, starting with the Rally Monte Carlo on January 22-25. FIA World Rally Championship (WRC) New technology, new design: presenting the second generation Polo R WRC - World premiere of the 318-hp Polo R WRC in Wolfsburg - Member of the Board, Dr. Heinz-Jakob Neusser, launches title defence - WRC kicks off with the iconic Rally Monte Carlo from 22–25 January Wolfsburg (15 January 2015). In top form, both technically and visually: Volkswagen presented the second generation of the Polo R WRC in Autostadt, Wolfsburg. The works team from Wolfsburg has its sights set firmly on another successful defence of its titles in the FIA World Rally Championship (WRC) with a new car and a new look. Volkswagen completed a clean sweep of all the World Championship titles when the Polo R WRC made its debut in 2013, before repeating this impressive feat last season. Continuity is the key to the driving line-up for 2015: double world champions Sebastien Ogier/Julien Ingrassia (F/F) and team-mates Jari-Matti Latvala/Miikka Anttila (FIN/FIN) and Andreas Mikkelsen/Ola Floene (N/N) will roll down the starting ramp and head onto the first special stage of the year for Volkswagen at the legendary Rally Monte Carlo on 22 January. "The new Polo R WRC has undergone intense further development, both on the inside and the outside," said Dr.