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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.

Entry-level Audi R8 to go turbo after all?

Would you be shocked if we told you that the better version of the Audi R8 offered a V8 engine rather than a V10? There was something inherently lovable about the company's 4.2-liter V8. Maybe it was the noise or the high-revving nature or some combination of the two, but the R8's original engine is a darn hoot. Sadly, the V8's days appear numbered in the brand's flagship model, according to a new report from Car, which claims Audi will ditch the beloved, off-angle 4.2-liter for a 2.9-liter, twin-turbocharged V6. The rumor cites sources in Ingolstadt who claim the new engine will develop 450 horsepower, up 20 ponies on the current entry level engine. We'd expect a commensurate increase in fuel economy too, befitting of a smaller, force-induced engine. Still, this is counter to what we've heard before. But, if the report proves true, the R8 will join the ranks of turbocharged supercars like the Ferrari 488 GTB and California. It's unclear when such a switch would be made, but according to Car, we can place the blame squarely on China. The country has been combating large-displacement engines since 2008, attaching massive taxes on vehicles with anything larger than a 3.0-liter engine. It's China's position, Car reports, that led to the death of another beloved, naturally aspirated V8, Mercedes-AMG's 6.2-liter model. First the venerable M156 and now Audi's 4.2-liter V8? Just stop this silliness China. Related Video:

Audi confirms Q8, electric CUV in the works

Word got out in late 2012 that the Audi Q8 was reportedly approved for production, but the company has kept the model's development under wraps since then. In a recent speech during Audi's annual meeting, chairman Rupert Stadler confirmed a little more about the vehicle and dropped some hints about other upcoming projects. With luxury crossovers remaining a lucrative market, it should be no shock that Stadler emphasized them in his speech. He reiterated that the Q1 was on track to launch in 2016, and the chairman also confirmed the Q8 as "a sporty Q derivative" that's on the way. The last member of Audi's upcoming CUV onslaught, an electric Q series, is set for 2018 with a range of over 311 miles. An earlier report suggests that the Q1 might not go on sale in the US because it's not right for the market. However, Audi of America is pushing hard to get the Q8. That crossover is based on the latest Q7 (pictured above) and is a way for the Four Rings to take on the BMW X6 and Mercedes-Benz GLE Coupe. The electric Q model was only officially announced earlier this year, and it might use 90-kWh batteries to achieve its performance and range goals. The rest of Stadler's speech focused on the company's future. This year alone, the company is launching products like the second-gen Q7, the new R8, and latest A4. In the next five years, Audi plans to grow its product range from 52 vehicles "to about 60 models," according to the chairman. Rupert Stadler, Chairman of the Board of Management of AUDI AG Neckarsulm, 2015-05-22 Speech at the 126th Annual General Meeting of AUDI AG Outlook Thank you, Axel Strotbek, for your summary of financial year 2014. Ladies and gentlemen, that brings us to 2015 – the year of the next stage of our model initiative. We will present twelve new Audi models this year; the three most important of them are: the new Audi Q7, the new Audi R8 as the sporty spearhead of our brand and our top seller, the new Audi A4. You have already been able to admire the new Q7 and R8 at the entrance. Both of them make a strong statement. Both of them stand for sportiness and top premium quality. And both of them underscore our claim to leadership. We have produced more than 540,000 of the first-generation Q7. The new Audi Q7 is more than a worthy successor. It's the lightest vehicle in its segment. By means of intelligent lightweight construction, we have reduced its weight compared with the predecessor by up to 325 kilograms, depending on equipment levels.