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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 Q3 recalled for wanting to stay dry

Volkswagen of America has announced a recall of the 2015 Audi Q3 because in one instance the car might not stop what it's doing even when you turn it off. If you shut down the car while the sunroof is closing, the sunroof could keep on closing. That possibility contravenes federal standards concerning roof panel systems and affects up to 3,646 examples of the Q3 manufactured between April 4, 2014 and November 5, 2014. Customers are asked to bring their Q3s to their Audi dealers, where the sunroof control module will be updated free of charge. You'll find a bit more information in the bulletin from the National Highway Traffic Safety Administration below. Related Video: Report Receipt Date: APR 03, 2015NHTSA Campaign Number: 15V200000Component(s): VISIBILITYPotential Number of Units Affected: 3,646Vehicle Make Model Model Year(s): AUDI Q3 2015Manufacturer: Volkswagen Group of America, Inc.SUMMARY: Volkswagen Group of America, Inc. (Volkswagen) is recalling certain model year 2015 Audi Q3 vehicles manufactured April 4, 2014, to November 5, 2014. If the vehicle is turned off while the sunroof is closing, the sunroof may continue to close instead of stopping. As such, these vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard (FMVSS) 118, "Power-Operated Window, Partition, and Roof Panel Systems."CONSEQUENCE: If the sunroof is closing while the vehicle is shut off and a vehicle occupant is in its path, there is an increased risk of injury.REMEDY: Audi will notify owners, and dealers will update the sunroof control module software, free of charge. The recall began on April 13, 2015. Owners may contact Audi customer service at 1-800-253-2834 FREE. Volkswagen's number for this recall is 60C1.NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 FREE (TTY 1-800-424-9153 FREE), or go to www.safercar.gov.

VW orders external probe into diesel emission scandal

There are well over 480,000 Volkswagen-made, diesel-powered vehicles currently traveling roads in the United States that do not meet the Environmental Protection Agency's emissions requirements. This, as you can probably imagine, is a very big deal, and has led VW CEO Professor Doctor Martin Winterkorn to release an official statement on the matter. "I personally am deeply sorry that we have broken the trust of our customers and the public," he said. It's important to note that these vehicles run software with a so-called "defeat device" that kicks in when the on-board computer senses that it is being tested for emissions. When the car is operating normally – in other words, when its exhaust isn't being sniffed – the cars do not meet US emissions standards. According to the EPA and the California Air Resources Board, affected cars emit as much as 40 times the allowable level of certain pollutants. "We will cooperate fully with the responsible agencies, with transparency and urgency, to clearly, openly, and completely establish all of the facts of this case," according to Winterkorn, who added, "Volkswagen has ordered an external investigation of this matter." It's not yet known who will carry out this investigation. At present, there are still a number of 2015 Volkswagen models on dealer lots that do not meet emissions requirements. VW has issued a stop sale on vehicles equipped with the 2.0-liter TDI diesel engine. What's more, the German automaker has been barred from selling 2016 model-year vehicles that use this engine, according to The Detroit News. Last year, diesel vehicles made up about 22 percent of all VW sales, which means these restrictions will have a big impact on the brand's sales performance until a remedy is found and the vehicles are approved for sale. Interestingly, the EPA has started a campaign of sorts to test vehicles from other automakers that sell diesel-powered vehicles in the United States to make sure they comply with emissions requirements under all operating circumstances. The EPA says it "will be reviewing [its] compliance protocols and introducing ways in which [it] can effectively test not only for emissions performance but also for the potential presence of defeat devices," according to a statement provided to The Detroit News. Check out the full statement from VW CEO Martin Winterkorn below. Related Video: STATEMENT OF PROF. DR.