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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 readying diesel PHEV models for US and Europe

With the racing pedigree provided by the Audi R18 E-Tron Quattro, you'd be forgiven for thinking that the German king of Le Mans is capitalizing on the connection between its road cars and race cars at every opportunity. Maybe there's an entire range of Le Mans Editions for the automakers diesel-hybrid offerings, with perhaps Tom Kristensen acting as the brand's spokesperson for the technology in Europe. You'd be wrong, though, because despite the R18's overwhelming successes in endurance racing, Audi the road-car manufacturer doesn't offer a single diesel-hybrid production car.
This factoid will hopefully be as short lived as it is disappointing, though, as a diesel-electric is around the corner, according to the brand's tech boss, Ulrich Hackenberg. In fact, it gets better than a mere diesel-hybrid; it will be a plug-in diesel-hybrid, only the second to hit the market, alongside the European-market Volvo V60.
According to Hackenberg, the new tech will be the result of a marriage between the brand's well-received 3.0-liter, TDI V6 with an electric motor. The next-generation Audi Q7 (shown above) will be the initial recipient, confirming previous reports that claimed a PHEV TDI could come to the next-gen CUV. Its MLB architecture, meanwhile, would allow the plug-in-hybrid-diesel powertrain to be fitted easily enough to the A8 luxury sedan. While the new Q7 should hit the market at some point in 2015, it's unclear when the PHEV TDI model could see the light of day.

2016 Audi R18 whooshes around Sebring to test for WEC

The 2016 Audi R18 is a radically different endurance racer than the model it replaces. The designers drape the chassis in an angular body rather than the previous curves, and the engineers added lithium-ion batteries for energy storage. Now, we get to see these big changes in motion thanks to a video of the new car testing at Sebring. Like previous iterations of Audi's diesel-fueled racers, the latest R18 is quiet around the track. It seems to sneak up on corners with just a whoosh and a whir from the powertrain. The updated design also looks a lot better in motion than in static photos. Audi had a rough time in the 2015 FIA World Endurance Championship after losing to rival Porsche both at Le Mans during the summer and in the manufacturers' standings at the end of the year. Related Video: