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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.

Audi A4 TDI plans scrapped for the US

It comes as no great surprise, but Audi of America president Scott Keogh told Automotive News that the automaker has ditched plans to offer the 2.0-liter TDI-powered A4 here in the US. Despite what you may be thinking, Keogh claims the decision isn't based on the ongoing talks between parent company Volkswagen and US regulators regarding the diesel emissions scandal. (Currently, Audi and Volkswagen are awaiting EPA certification for their diesel engines in the US.) The reason, he says, is that the demand for diesel sedans is low here, particularly when compared to the company's lineup of crossovers. "The marketplace speaks, we listen to the marketplace, and the marketplace told us, 'Go with SUVs,'" says Keogh, presumably in his usual straightforward, assuring manner. That's not to say, though, that one doesn't have an effect on the other. We've already seen that the scandal has had an impact on sales. Now, in a country where many were already under the assumption that diesel engines were dirty and noisy, it's no revelation that automakers are less than enthusiastic about expanding their grease-burning offerings. While the news is a bit of a bummer for those of us who have long hoped for more widespread diesel options here in the States (and for whom the whole Dieselgate debacle is downright depressing), there's still plenty to look forward to in terms of greener, cleaner Audis. At the A3 E-Tron event late last year, Keogh was bullish on EVs, promising that it was just the first step in a "substantial commitment." Audi's plan is, in Keogh's words, to "start with the plugs, come in with the full BEVs and then keep rolling from there." He repeated these assurances at the LA Auto show, saying that he expects 20 to 25 percent of Audi's sales to be plug-in vehicles by 2025. Plus, despite the whole diesel thing (which, to be fair, affects far fewer Audi cars than Volkswagens), Audi has been killing it lately. February sales marked a streak of 62 consecutive months of record sales in the US. For an automaker that is repeatedly saying that it believes the future is in electrification, this bodes well for us. Related Video:

Did the new Audi R8 just get outed on Instagram?

While we can't confirm it officially, what you're looking at above, according to Instagram user dreboog (Dre Boogie), may indeed be the next Audi R8. We're expecting Audi's revised supercar to get its official debut at the 2015 Geneva Motor Show, which would makes the timing of this leak make sense. You can compare this image with the spy shots we've already seen and draw your own conclusions, but it looks about right to our eyes. There are a few interesting tidbits worth noting, the most immediately obvious being the lack of the so-called side blades that were a polarizing styling element with the first Audi R8 first hit the scene but which have since become part of the coupe's signature look. We also see a front fascia that brings the low-slung coupe more in line with the German brand's current design ethos. Besides those readily apparent cues, there's not much to glean from this Instagram leak. We'd certainly expect more power from Audi's halo car, but just how much more than the 430 horsepower offered by the current V8, 525 hp from the V10 or 550 hp from the V10 Plus, we look forward to finding out. In the meantime, feel free to let us know what you think in the Comments. News Source: dreboog via InstagramTip: Andreas Design/Style Spy Photos Geneva Motor Show Audi Coupe Performance Supercars autoblog black